Ether ETF To Attract $45B Inflow In First Year: Standard Chartered
Standard Chartered Bank made a bold prediction around the approval of Spot Ether ETFs. A Standard Chartered analyst believes that the U.S. Securities and Exchange Commission (SEC) will approve a series of Ethereum ETFs this week. Moreover, he expects these ETFs to draw an influx of a whopping $45 billion in the first year after debut.
Standard Chartered Bullish On Ether ETF Approval
According to Geoff Kendrick, Head of FX Research and Digital Assets Research at Standard Chartered, the approval of Spot Ether ETFs could lead to inflows ranging from 2.39 million to 9.15 million Ether in the first year. “After approval, we estimate that Spot ETFs will drive inflows of 2.39-9.15 million Ether in the first 12 months after approval,” Kendrick stated.
He further emphasized the magnitude of this potential influx by translating it into U.S. dollar terms. The analyst suggested that it could equate to approximately $15 billion to $45 billion, according to The Block. The timing of this forecast is critical as the first round of Spot Ethereum ETF deadlines is fast approaching.
VanEck’s deadline is set for May 23, followed by Ark 21Shares’ on May 24. Moreover, the approval of these ETFs is seen as a potential catalyst for the market, mirroring the impact observed with Bitcoin ETFs. Kendrick drew parallels between the expected inflows into Ether ETFs and those observed with Bitcoin ETFs.
He noted the accuracy of Standard Chartered’s previous estimates. “As a percentage of market cap, it is similar to our estimates of inflows to bitcoin ETFs, which are proving accurate,” he explained. In a detailed analysis note, Kendrick projected that the approval of Spot Ether ETFs could enable Ethereum to maintain pace with Bitcoin. This would aid in keeping the current 5.4% price ratio stable throughout 2024.
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Ethereum Price To $8,000?
Moreover, the analyst further elaborated on the implications of this projection for the Ethereum price trajectory, given their bullish outlook on bitcoin. “Given that we now see bitcoin reaching the $150,000 level by end-2024, this would imply a level of $8,000 for Ether,” Kendrick predicted.
Looking further ahead, Standard Chartered’s optimistic outlook extends into 2025. In addition, Kendrick reiterated the bank’s earlier price target for ETH, aligning it with their forecast for Bitcoin. The BTC target is set at $200,000 while ETH price target is pegged at $14,000 by the end of 2025.
Furthermore, Miles Deutscher, a crypto analyst, echoed a similar sentiment and offered a bullish outlook for ETH. The analyst expects the Ethereum price to shoot above $6,400 after the ETF approval. He took to X and wrote, “$BTC rallied 75% in 63 days after the spot ETF was approved. If $ETH follows the same trend (if approved), this would take it to $6,446 by July 23.”
Amid the growing optimism, the Ethereum futures open interest has reached an all-time high. According to Coinglass data, the ETH open interest has soared 35.12% to $15.60 billion, indicating a surge in interest among derivatives traders. At press time, the Ethereum price rallied 21.83% to $3,766.68 on Tuesday, May 21.
Also Read: Ethereum (ETH) Price Targets $4,000 As Odds of Spot Ether ETF Improve
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