The approval of a spot Ethereum (ETH) could happen as early as May 2024

Standard Chartered Bank, a multinational financial institution, has recently predicted that the U.S. Securities and Exchange Commission (SEC) will approve a spot Ethereum exchange-traded fund (ETF) in May. This news comes on the heels of the recent approval of Bitcoin ETFs, which has also raised hopes for an Ethereum ETF. According to Standard Chartered, the SEC's approval of a spot Ethereum ETF could drive a surge in Ethereum's price, with the digital currency potentially reaching $4,000.

The potential for an Ethereum ETF has been a topic of great interest in the cryptocurrency community for some time now. An ETF is a type of investment fund that allows investors to buy and sell shares that represent ownership in a collection of securities, such as stocks, bonds, or, in this case, Ethereum. An Ethereum ETF would allow investors to gain exposure to Ethereum's price movements without buying and storing the digital currency itself. This would make it easier for institutional and retail investors to buy Ethereum, potentially increasing demand for the digital currency.

The SEC's recent approval of Bitcoin ETFs has raised hopes for an Ethereum ETF. The first Bitcoin ETF to be approved in the United States, the Purpose Bitcoin ETF, began trading on the New York Stock Exchange, Nasdaq, and OTC Markets in December 2023. The approval of Bitcoin ETFs has been seen as a positive sign for the prospects of an Ethereum ETF, as it suggests the SEC is becoming more open to approving cryptocurrency ETFs.

Standard Chartered’s prediction that the SEC will approve a spot Ethereum ETF in May is based on the assumption that there are no market glitches related to the newly approved Bitcoin ETFs. This assumption seems reasonable, given that the approval of the Bitcoin ETFs did not result in any major market disruptions. If the approval of a spot Ethereum ETF does indeed happen in May, it could significantly impact Ethereum's price.

According to Standard Chartered, the SEC's approval of a spot Ethereum ETF could drive a surge in Ethereum's price, with the digital currency potentially reaching $4,000. This forecast assumes that approving an Ethereum ETF would increase institutional and retail demand for Ethereum. This increased demand could drive up the price of Ethereum, particularly if its supply remains limited. The $4,000 price target is based on technical analysis of Ethereum's price movements and considers the potential impact of an Ethereum ETF approval.

It is important to note that this is a forecast, and the actual impact of an Ethereum ETF's approval on Ethereum's price is difficult to predict with certainty. The cost of Ethereum is influenced by a wide range of factors, including market sentiment, trading volume, and technological developments. The approval of an Ethereum ETF is not guaranteed, and the SEC could decide not to approve it.