Standard Chartered Bank is anticipating that the U.S. Securities and Exchange Commission (SEC) will greenlight ether ETFs this week, with the impending deadlines for the first round of spot ether ETF applications drawing near. VanEck's application deadline is set for May 23, followed by Ark Invest/21Shares on May 24, marking a crucial period for the cryptocurrency market.

Geoff Kendrick, Head of FX Research and Digital Assets Research at Standard Chartered Bank, shared his optimism in an interview with The Block, expressing a high level of confidence with estimates ranging from "80% to 90%" certainty that ether ETFs will receive approval this week. Kendrick also outlined the potential market impact of such approval, projecting significant inflows of 2.39-9.15 million ether within the first year post-approval, translating to approximately $15 billion to $45 billion in U.S. dollar terms.

Drawing parallels to the market dynamics observed with bitcoin ETFs, Kendrick highlighted the accuracy of past inflow projections and suggested that the approval of spot ether ETFs could help maintain ether's price ratio with bitcoin throughout 2024. With current trends in mind, Kendrick envisions bitcoin reaching $150,000 by the end of 2024, implying an ether price of around $8,000, setting the stage for potential market movements in the coming months.

Standard Chartered Bank's bullish outlook extends into the future, with Kendrick reaffirming a previous price target for ether, projecting a price of $14,000 by the end of 2025 based on the bank's estimated bitcoin price of $200,000 by the same period, aligning with their forecast from March. The bank's positive stance reflects a broader sentiment of optimism within the cryptocurrency community regarding the potential growth and acceptance of digital assets in mainstream financial markets.

The likelihood of ether ETF approval received a boost when the SEC requested updates to 19b-4 filings for spot ether ETFs, signaling progress towards a favorable decision. Despite these positive developments, Kendrick emphasized that approval is not guaranteed, underscoring the need for cautious optimism amidst the evolving regulatory landscape.

In response to these encouraging signs, Bloomberg ETF analysts James Seyffart and Eric Balchunas revised their probability estimate for SEC approval of ether ETFs from 25% to 75%, reflecting the growing confidence in the industry regarding the potential approval of these investment products. This shift in sentiment has had a tangible impact on the market, with ether's price surging by over 19% in the past 24 hours, reaching $3,719, and the GM 30 Index, tracking the top 30 cryptocurrencies, experiencing a notable increase of 9.25% during the same period.

As the crypto market eagerly awaits the SEC's decision, the potential approval of spot ether ETFs represents a significant milestone that could open up new avenues for investors to access and invest in ether, potentially leading to substantial capital inflows and further legitimizing the cryptocurrency within mainstream financial markets. The outcome of these developments could have far-reaching implications for the future trajectory of ether and the broader cryptocurrency landscape.