Even in light of the temporary delay by the U.S. Securities and Exchange Commission (SEC) in granting approval for spot Ether ETFs, Standard Chartered maintains a positive outlook on the cryptocurrency market.
Delays Expected for Spot Ether ETF Approval in the U.S.
Initially, the bank had anticipated May as the month for approval. However, analyst Geoff Kendrick has now pointed out potential obstacles such as the recent Uniswap lawsuit and the upward trend in Treasury yields, which have extended the timeline for approval.
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Standard Chartered has recently adjusted its earlier timeline projection for the approval of spot Ether ETFs in the United States, originally anticipated in May, as reported by CoinDesk. Despite the U.S. Securities and Exchange Commission's approval of spot Bitcoin ETFs in January of this year, prediction markets like Polymarket currently assign only a 14% likelihood of such approval by the end of the upcoming month.
Analyst Highlights Challenges Facing Digital Asset Market
Geoff Kendrick, an analyst at Standard Chartered who had previously anticipated a May 23 launch for spot Ether ETFs, has highlighted several challenges currently affecting the digital asset market. These include the U.S. Securities and Exchange Commission's recent lawsuit against the decentralized finance (DeFi) platform Uniswap, the upward trajectory of U.S. Treasury yields, delayed Federal Reserve rate cuts, and the adverse effects of escalating conflict in the Middle East on risk assets like Bitcoin and Ethereum.
This combination of factors has led to a tempering of expectations regarding Ethereum's rapid integration into mainstream financial products. Nevertheless, despite these challenges, Standard Chartered remains steadfast in its confidence regarding the long-term trajectory of digital assets.
Standard Chartered Sticks to Bullish Bitcoin and Ethereum Predictions
Standard Chartered maintains a bullish stance, reaffirming its year-end price targets of $150,000 for Bitcoin and $8,000 for Ethereum, with expectations for the latter to surge to $14,000 by 2025. At the time of writing, Bitcoin is trading at $66,600, while Ethereum is priced at $3,280, according to data from CryptoCompare.
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The report also sheds light on significant market adjustments, notably the largest daily liquidation of leveraged long positions in the Bitcoin futures market since October 2023. This liquidation, amounting to $261 million, was triggered by geopolitical tensions in mid-April, resulting in a substantial withdrawal of funds from the market.
Looking Ahead
The bank's projection, as reported by CryptoGlobe, suggests that Bitcoin could potentially reach the $200,000 mark by the conclusion of 2025. This forecast is predicated on the assumption that between 437,000 and 1.32 million new bitcoins will be held in U.S. spot ETFs by the end of 2024, resulting in an estimated inflow of approximately $50-100 billion.
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Such a substantial influx of funds into U.S. spot ETFs could significantly impact the price of Bitcoin. Increased demand driven by institutional investment through ETFs could potentially drive up Bitcoin's price as the supply-demand dynamics shift. This influx of institutional capital into the Bitcoin market could lead to heightened price volatility and potentially drive prices higher over the long term, aligning with Standard Chartered's bullish price targets for Bitcoin.
See more: Cryptocurrency Prices and Market Cap
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