Standard Chartered expects the Securities and Exchange Commission (SEC) to handle spot Ethereum ETH/USD ETF applications in the same way it handled Bitcoin BTC/USD ones and approve pending applications by May 23.
In a research report released Tuesday, Standard Chartered also predicted the price of Ether to spike up to $4000 by then if it performs similarly to BTC in the run-up to the ETF approvals.
Furthermore, it stated that the slowdown in Grayscale Bitcoin Trust GBTC selling in the past few sessions should also help revive the BTC price uptrend.
SEC's Strategy And Market Anticipation
Standard Chartered's analysis underscores the SEC's likely replication of the BTC ETF approval process for Ethereum, given their structural similarities.
"During the SEC's litigation against Ripple XRP/USD last June, Ethereum, like Bitcoin, was notably absent from the list of securities. This omission is a strong indicator of the SEC's perspective on Ethereum," Geoff Kendrick, head of FX Research, West, and Digital Assets Research notes.
Also Read: VanEck CEO Says Cryptos Deserve A Place In Everyone's Portfolio
Post-Approval Dynamics And Ethereum's Market Position
The report anticipates Ethereum to be less vulnerable to post-approval selling pressures compared to Bitcoin.
This is attributed to the Grayscale Ethereum Trust's smaller proportion of the overall ETH market cap compared to GBTC's share in Bitcoin.
"Ethereum's market dynamics, especially in the context of the Grayscale Ethereum Trust, position it differently from Bitcoin in terms of post-approval market behavior," Kendrick observes.
Implications Of The 'Dencun' Upgrade For Ethereum
The upcoming 'Dencun' upgrade for Ethereum, which aims to reduce transaction costs on layer 2 blockchains, is also highlighted in the report.
"This upgrade is poised to enhance Ethereum's competitive edge and could be a significant value driver for ETH," Kendrick states.
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