Currently, the SEC is reviewing multiple relevant applications, with a decision deadline set for February 23. According to Geoffrey Kendrick, head of Forex and digital assets research at Standard Chartered, the SEC will likely follow the same approach it took when approving spot Bitcoin ETFs. This means extending decision deadlines and ultimately approving them before the final deadline.
“We anticipate that the current applications will receive approval on May 23. This deadline aligns with the first pending application, similar to how January 10th was significant for Bitcoin spot ETFs. If Ether’s price follows Bitcoin’s example in anticipation of ETF approval, we could see Ether valued at around $4,000 by the end of May,” Kendrick explained.
Standard Chartered’s analysts also emphasized that the SEC currently does not classify ether as a security, making approval of spot ETFs highly likely. Furthermore, futures funds for this second cryptocurrency have already obtained regulatory approval.
“Grayscale also possesses an ETH trust that the company intends to convert into a spot ETF. Hence, rejecting such an application would likely result in another lawsuit from Grayscale. We see no fundamental reason to treat ETH differently,” Kendrick added.
Previously, SEC Commissioner Hester Peirce assured that companies would not have to resort to legal action against the regulator to secure the approval of Ether ETFs.