Experts from Standard Chartered Bank believe that the approval of spot ETH ETF funds could bring up to USD 45 billion to the market. The applications are already on the table of the American regulator and may be approved as early as May 23. Will the SEC actually approve ETH ETFs right after the BTC halving?
Experts from Standard Chartered Bank are optimistic about the approval of ETH ETFs!
Although the digital assets market is currently bearish, it is an undeniable fact that the introduction of BTC ETFs has fueled the growth of digital assets on a scale not seen since 2021. Although there was a lot of speculation about how BTC ETFs influenced Bitcoin, the reality was that the historical ATH was broken. Now there are applications for approval of spot funds based on the second cryptocurrency on the market, ethereum.
This event may be the next one that will leave a positive mark on the digital assets market and introduce huge capital. This is the opinion of, for example, Geoffrey Kendrick, head of fiat and cryptocurrency market research at Standard Chartered Bank. According to him:
If ETFs are approved, I estimate $15 billion to $45 billion in inflows in the first 12 months, using the same reasoning I applied to ETF cash flows.
In Monday's report, Kendrick noted that in a recent announcement, the London Stock Exchange confirmed that it will accept applications for exchange-traded BTC and ETH-backed bonds in the second quarter. This increases the likelihood that the SEC will approve ETH ETFs on May 23.
Will the SEC approve ETH ETFs at the first deadline?
Theoretically yes, but in practice it may be different. Although the expectations regarding the approval of applications (from BlackRock and other giants) for ETH ETFs are huge, this does not mean that the scenario with BTC ETFs will repeat itself. It is worth remembering that the decision to approve Bitcoin-based ETFs has been postponed many times, and the entire digital assets industry has been trying to outdo each other in predicting when this will happen.
One of the SEC chairman's last interviews with Bloomberg TV may also be a spoonful of tar in a barrel of honey. During a conversation with journalists, Gary Gensler refused to answer the question whether ethereum is a security. All cards in play.
