ETH boost predicted: Standard Chartered anticipates $45 billion inflows to Ethereum ETFs

Standard Chartered, a major British bank, is optimistic about the future of Ethereum (ETH). In a recent research note, the bank predicts a significant rise in Ethereum’s value if regulators approve Ethereum Exchange-Traded Funds (ETFs) in May 2024.

This bullish outlook extends to Bitcoin (BTC) as well. Standard Chartered has increased its previous prediction for the peak of the next Bitcoin price cycle, now forecasting a price of $250,000 per Bitcoin by 2025.

Ethereum Price Poised for Takeoff?

Standard Chartered believes that Ethereum could experience substantial growth, reaching $14,000 per unit, if a wave of investment floods into the market following ETF approval. Their prediction hinges on an estimated inflow of up to $45 billion within the first year after ETFs are approved.

The bank’s analyst, Geoff Kendrick, compares this expected influx to the impact of Bitcoin spot ETFs, which track the price of Bitcoin. Since their launch in January 2021, Bitcoin spot ETFs have attracted significant investment, accumulating over $11.9 billion in assets under management as of today. This surge surpasses outflows from Grayscale Bitcoin Trust, a well-established investment vehicle, and highlights the strong investor demand for these new ETF products.

We estimate that spot ETFs will drive inflows of 2.39-9.15 million ETH in the first twelve months after approval

Geoff Kendrick, Head of West and Crypto Research, Standard Chartered Bank

Standard Chartered sees the historical impact of Bitcoin spot ETFs as a clear indicator of what could happen with Ethereum. Their prediction suggests that Ethereum’s price could reach as high as $14,000 per unit on the back of an estimated $45 billion in new investments within the first year of Ethereum ETF approval.

This prediction aligns with a hypothetical investment strategy called “two-asset optimization,” where investors allocate a portion of their gold holdings to Ethereum. Standard Chartered suggests that a 20% allocation from gold to Ethereum could be a viable strategy based on their growth projections.

Ethereum ETF Approval: May 2024 or Later?

While Standard Chartered is optimistic about Ethereum ETF approval in May 2024, some industry experts remain skeptical. Bloomberg ETF analyst Eric Balchunas suggests a lower likelihood of approval, placing the current chances at only 35% based on market conditions.

Only time will tell if regulators will approve Ethereum ETFs in May 2024. However, Standard Chartered’s bullish outlook underscores the potential for significant growth in the Ethereum market, fueled by increased investor interest and easier access through ETFs.

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