In a remarkable forecast from banking giant Standard Chartered, Ethereum is anticipated to skyrocket to $8000 by the end of 2024. This bullish projection hinges on the approval of an Ethereum-based Exchange Traded Fund (ETF) by the U.S. Securities and Exchange Commission (SEC), expected to come through by May 2024. The approval is set to mark a significant milestone in the cryptocurrency market, potentially opening the floodgates to substantial institutional investment.
Analysts from Standard Chartered believe that the approval of the Ethereum-ETF will catalyze an influx of funds ranging between $15 billion and $45 billion in the first year alone. According to Jeff Kendrick, head of digital asset research at Standard Chartered, this inflow will translate to between 2.39 million to 9.15 million ETH. "Our estimates, based on the approval of spot Ethereum-ETFs, predict an inflow equivalent to our projections for the Bitcoin-ETFs, which proved accurate," Kendrick explained. The comparison with Bitcoin-ETF inflows suggests a strong confidence among analysts in the replicability of past market responses.
The implications of such an influx are significant. It indicates a robust confidence in Ethereum as a staple digital asset, parallel to, if not surpassing, the optimism previously reserved for Bitcoin. Additionally, the expected ETF approval is likely to enhance Ethereum's liquidity and reduce volatility, making it even more attractive to both retail and institutional investors.
Further bolstering the positive outlook on digital currencies, Kendrick also projected that Bitcoin could reach a new all-time high of $150,000 by the end of 2024. He added that Ethereum could climb even higher to $14,000 by the end of 2025, reflecting a growing optimism in the crypto market's long-term value.
It's worth noting that these projections come in the wake of a mixed performance in the crypto market. Earlier in May, Standard Chartered analysts had indicated that Bitcoin might continue its decline, potentially falling to $50,000. However, the recent forecasts suggest a reversal and a significant bullish trend in the coming years.
Standard Chartered's bold predictions for Ethereum and Bitcoin underline the ongoing evolution and maturation of the cryptocurrency market. As regulatory landscapes adapt and more financial products linked to digital assets emerge, the potential for mainstream and institutional adoption grows. This evolving scenario could redefine the boundaries and the scale of investment in cryptocurrencies, making digital assets an integral part of diversified investment portfolios.
