StanChart’s head of crypto research, Geoffrey Kendrick, 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 likelihood of spot Ethereum ETFs being approved this week.

Balchanus raised the odds from 25% to 75%, citing changes in the Biden administration’s stance on the approvals. Polymarket similarly revised the approval odds to over 60% from 10%.

The announcement has had a ripple effect across the crypto market, influencing both trading platforms and asset prices.

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

Ethereum prices have responded robustly, climbing 18% to $3,700. This rise has positively impacted the broader crypto market, with several digital assets experiencing similar uptrends. The focus now shifts to the US SEC, which is expected to make a decision on the spot ETH applications by Thursday.

Balchanus recalled the SEC’s approval of Bitcoin (BTC) ETFs on Jan. 10, which came shortly after a report from the hacked SEC Twitter account the previous day. Market participants are watching closely for a similar timing pattern in the ETH ETF decision.

In a March research note, Kendrick projected that the approval of ETH ETFs could lead to inflows ranging between $15 billion and $45 billion within the first year. He maintains this forecast, emphasizing the potentially greater impact of ETH ETF flows compared to BTC ETFs.

He argued that the relative lack of alternatives for ETH positions pre-ETFs and the perception of Ethereum as the ‘big tech’ of digital assets will drive significant investor interest.

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

He also noted the positive implications for Bitcoin, expecting a fresh all-time high for BTC by the weekend, surpassing the previous peak of $73,798 set on March 14. He reiterated his year-end price targets of $150,000 for 2024 and $200,000 for 2025 for Bitcoin.

The impending decision on ETH ETFs could further legitimize the crypto sector, 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.

Mentioned in this article