StanChart reaffirms Ethereum’s potential to hit $8000 following ETF approval

Standard Chartered reaffirmed its projection that Ethereum (ETH) will reach $8,000 by the end of the year, following heightened anticipation of ETF approvals.

StanChart’s head of crypto research, Geoffrey Kendrick, said in a note shared with CryptoSlate that recent developments reflect heightened investor optimism and increased market activity.

Kendrick’s statement comes after Bloomberg analyst Eric Balchanus significantly increased the likelihood of spot Ethereum ETFs being approved this week.

Balchanus raised the odds from 25% to 75%, citing changes in the Biden administration’s stance on the approvals. Polymarket similarly revised the approval odds to over 60% from 10%.

The announcement has had a ripple effect across the crypto market, influencing both trading platforms and asset prices.

Kendrick also highlighted that the net asset value (NAV) discount on the ETH Grayscale Trust (ETHE) narrowed significantly over the past day, jumping from -25% to -12% — signaling increasing optimism in the market.

Ethereum prices have responded robustly, climbing 18% to $3,700. This rise has positively impacted the broader crypto market, with several digital assets experiencing similar uptrends. The focus now shifts to the US SEC, which is expected to make a decision on the spot ETH applications by Thursday.

Balchanus recalled the SEC’s approval of Bitcoin (BTC) ETFs on Jan. 10, which came shortly after a report from the hacked SEC Twitter account the previous day. Market participants are watching closely for a similar timing pattern in the ETH ETF decision.

In a March research note, Kendrick projected that the approval of ETH ETFs could lead to inflows ranging between $15 billion and $45 billion within the first year. He maintains this forecast, emphasizing the potentially greater impact of ETH ETF flows compared to BTC ETFs.

He argued that the relative lack of alternatives for ETH positions pre-ETFs and the perception of Ethereum as the ‘big tech’ of digital assets…