News - Could ETH soon break the 4,000 Dollar mark?

By Luc Vesters

Could ETH soon break the 4,000 Dollar mark?

Ethereum (ETH)

The second largest cryptocurrency, Ether (ETH), could rise nearly 70 percent from its current level and cross the USD 4,000 mark in May. The British Standard Chartered Bank assumes this because she thinks a ETF-authorization by the U.S. SEC in May is likely.

Analysts at StanChart assume that decisions on ETF applications will be delayed until the first final approval date. This would be May 23: the latest deadline for applications from asset managers VanEck and Ark/21Shares.

The bank's prediction is based on the fact that the SEC has not yet categorized ether as a security in its lawsuits against crypto companies. In addition, ETH is listed as a regulated futures contract on the Chicago Mercantile Exchange (CME).

Furthermore, ETH would experience less selling pressure than BTC after a possible ETF approval, according to lead analyst Kendrick. He bases this assumption on the fact that the Grayscale Ethereum Fund (ETHE) has a significantly smaller share of Ether market capitalization than the Grayscale Bitcoin Fund (GBTC).

Kendrick expects that for May 23, only simple spot ETFs that track ether price movements will be approved for now. On the other hand, more specialized ETFs including staking rewards could be introduced later.

StanChart analyst Kendrick has shown himself to be an optimistic bull in the past. In early January, for example, he predicted that the Bitcoin price could rise to USD 100,000 by the end of the year as a result of the SEC's approval of spot ETFs.

In particular, past SEC Chairman Gary Gensler repeatedly stressed, however, that he makes a clear distinction between Bitcoin and all other cryptocurrencies.

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