Key Points
Standard Chartered’s Bullish Prediction for Ethereum
Standard Chartered, a leading international cross-border bank, has made a bullish prediction for Ethereum.
Analysts from the bank believe that Ethereum could reach new all-time highs.
This prediction is driven by the potential introduction of Spot ETH Exchange Traded Funds (ETFs).
Ethereum’s Potential Price Surge
Standard Chartered Bank analysts have maintained an optimistic outlook for Ethereum.
They expect that the second-largest cryptocurrency could witness a surge to $14,000 by 2025.
The analysts shared this in a note on Monday.
They revealed key factors that could drive Ethereum towards this price target.
The potential approval of an Ethereum Spot ETF by the United States Securities and Exchange Commission (SEC) is a primary catalyst for Ethereum’s projected surge.
If the SEC approves Spot Ethereum ETFs, Ethereum could reach $8,000 by the end of 2024 and $14,000 by 2025.
The analysts have an optimistic outlook regarding the approval of Ethereum Spot ETFs.
They anticipate the SEC’s authorization by May 2024.
Another significant factor that could drive the price of Ethereum to $14,000 is Ethereum’s recent Dencun upgrade.
Geoffrey Kendrick, Standard Chartered’s Head of Forex and Crypto Research, anticipates a surge in demand for Ethereum.
He cites potential reduction in transaction costs and improvements to the Ethereum blockchain facilitated by the upgrade as key drivers.
Projected Inflows from Ethereum Spot ETFs
Kendrick also believes that Spot Ethereum ETFs could trigger $45 billion in inflows into the market.
Despite a decline in overall optimism regarding the SEC’s potential approval of Ethereum ETFs by May, Kendrick maintains a positive outlook.
He affirms the possibility of the SEC granting approval for these investment assets by the specified deadline of May 23, 2024.
Kendrick has estimated inflows ranging from $15 billion to $45 billion within the first 12 months following the approval of Spot ETH ETFs.
He plans to apply the same methodology for estimating Spot Bitcoin ETF inflows in his analysis.
This suggests a similar trajectory for Ethereum’s future outlook as witnessed with Bitcoin following its ETF approval.
A similar scenario could potentially unfold for Ethereum if its ETF is authorized.
In such an event, the price of the cryptocurrency could witness a significant rise to new all-time highs.
This would be propelled by a surge in investor interest and capital inflows.
