Standard Chartered Bank: ETH is expected to reach $8,000 after Ethereum spot ETF is approved

Author: Assad Jafri, Cryptoslate; Compiler: Baishui, Golden Finance

As expectations of ETF approval heat up, Standard Chartered Bank has reiterated its forecast that Ethereum (ETH) will reach $8,000 by the end of the year.

In a report shared with CryptoSlate, Geoffrey Kendrick, head of cryptocurrency research at Standard Chartered, said that recent developments reflect growing investor optimism and increased market activity.

Kendrick's statement came after Bloomberg analyst Eric Balchanus significantly increased the likelihood that a spot Ethereum ETF would be approved this week.

Balchanus raised the probability from 25% to 75%, citing the Biden administration's changed stance on approval. Polymarket similarly revised the approval rate from 10% to more than 60%.

The announcement had a ripple effect across the cryptocurrency market, affecting trading platforms and asset prices.

Kendrick also highlighted that the ETH Grayscale Trust (ETHE)'s net asset value (NAV) discount narrowed significantly over the past day, jumping from -25% to -12%, indicating growing optimism in the market.

Ethereum prices responded strongly, rising 18% to $3,700. This rise had a positive impact on the broader cryptocurrency market, with multiple digital assets experiencing similar upward trends. The focus now turns to the U.S. SEC, which is expected to make a decision on the spot ETH application on Thursday.

Balchanus recalled the SEC’s approval of a Bitcoin ETF on Jan. 10, which came shortly after reports that the SEC’s Twitter account had been hacked the day before. Market participants are closely watching for similar timing patterns in ETH ETF decisions.

In a March research note,Kendrick projected that approval of an ETH ETF could bring in $15 billion to $45 billion in inflows within the first year. He maintained that forecast, highlighting the potential greater impact of ETH ETF flows compared to a BTC ETF.

He believes that the relative lack of ETH alternatives prior to the ETF, and Ethereum’s perceived “big tech” status as a digital asset, will greatly fuel investor interest.

Kendrick set ambitious price targets for Ethereum, predicting it will reach $8,000 by the end of 2024 and $14,000 by the end of 2025.

He also noted positive implications for Bitcoin, which is expected to hit a new all-time high over the weekend, surpassing the peak of $73,798 set on March 14. He reiterated his year-end price target of $150,000 for 2024 and $200,000 for 2025.

The upcoming decision on an ETH ETF could further legitimize the cryptocurrency industry, potentially driving significant capital inflows and boosting market confidence. Investors and market watchers await Thursday's decision, which could mark a pivotal moment for Ethereum and the broader digital asset market.