StanChart reaffirmed the possibility of Ethereum reaching $8000 after ETF approval.
Standard Chartered has reaffirmed its forecast for Ethereum (ETH) to reach $8,000 by the end of the year as expectations for ETF approval grow.
Geoffrey Kendrick, head of cryptocurrency research at StanChart, said in a note shared with CryptoSlate that recent developments reflect heightened investor optimism and increased market activity.
Kendrick’s statement comes after Bloomberg analyst Eric Balchanus significantly increased the chances of a spot Ethereum ETF being approved this week.
Vulcanus raised the probability from 25% to 75%, citing the Biden administration’s change in position on approval. Polymarket similarly modified the approval probability from 10% to over 60%.
The announcement had a ripple effect throughout the cryptocurrency market, impacting both trading platforms and asset prices.
Kendrick also highlighted that the discount to net asset value (NAV) of ETH Grayscale Trust (ETHE) has narrowed significantly over the past day, jumping from -25% to -12%. This means that market optimism is rising.
Ethereum price responded strongly, rising 18% to $3,700. This rise has had a positive impact on the broader cryptocurrency market, with several digital assets experiencing similar upward trends. The focus now shifts to the US SEC, which is expected to make a decision on the ETH application site by Thursday.
Vulcanus recalled the SEC’s approval of the Bitcoin (BTC) ETF on January 10, which came shortly after reports of a hacked SEC Twitter account the previous day. Market participants are closely watching similar timing patterns in ETH ETF decisions.
In a March research note, Kendrick estimated that the approval of the ETH ETF could bring in between $15 billion and $45 billion within the first year. He maintained this prediction, highlighting the potentially larger impact of ETH ETF flows compared to BTC ETFs.
He argued that the relative lack of alternatives to ETH positions before ETFs and the perception that Ethereum is the ‘big tech’ of digital assets will attract significant investor interest.
Kendrick set ambitious Ethereum price targets, predicting it would reach $8,000 by the end of 2024 and $14,000 by the end of 2025.
He also cited positive implications for Bitcoin, predicting that by the end of the week, BTC will hit a new all-time high, surpassing the previous high of $73,798 set on March 14. Bitcoin.
The impending decision on the ETH ETF could further legitimize the cryptocurrency sector, potentially spurring significant capital inflows and increasing market confidence. Investors and market watchers await Thursday’s decision in what could be a pivotal moment for Ethereum and the broader digital asset market.
