ETH ETF Rumours: Could a Regulatory Nod Catapult Prices?

Standard Chartered, a global banking giant with over AU$1.22 trillion (US$800 billion) in assets under management, has released a report predicting a substantial rise in Ethereum's value. This surge is anticipated to follow the potential approval of spot Ethereum exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) in May. The bank speculates that this approval could propel Ethereum's price to reach around AU$6,080 (US$4,000).

Ethereum last soared above the AU$6,080 mark in November 2021, achieving an all-time high of approximately AU$6,700 (US$4,878). Standard Chartered anticipates a similar price rally with the introduction of a mainstream investment option like a spot ETF.

As of the latest figures, Ethereum's market capitalization stands close to AU$433 billion (US$285 billion), with its current trading price around AU$3,496 (US$2,300), as per CoinMarketCap data.

Leading the charge among Wall Street firms seeking SEC approval for a spot in Ethereum ETF is BlackRock, the world's largest asset manager. Other notable applicants include VanEck and Cathie Wood's Ark 21Shares.

The SEC has a deadline of May 23, 2024, to decide on several applications for such products. Market observers anticipate the SEC might follow a similar pattern to its handling of spot bitcoin ETF applications, potentially waiting until the last day to announce its decision — applications that were ultimately successful.

Analysts remain optimistic about Ethereum funds, bolstered by regulatory attitudes. Both the SEC and the Commodities and Futures Trading Commission (CFTC) have not classified Ethereum as a security. Instead, the CFTC has labelled it a commodity. Additionally, a 2018 statement by William Hinman, the then-director of the Division of Corporation Finance at the SEC, affirmed that ether should not be considered a security.

The optimism surrounding potential Ethereum ETFs, however, is tempered by the stance of current SEC Chair, Gary Gensler. Gensler has implied that he may not approve such ETFs unless compelled by legal intervention. This cautious approach suggests that the road to an Ethereum ETF could encounter hurdles, and we may see developments unfold through court decisions. Stay tuned for more updates on this evolving subject, as we continue to monitor and report on the latest regulatory shifts and their impact on the crypto market.

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