Mega Bank Says Ethereum Price Could Reach $14,000, Here’s Why
Leading international cross-border bank, Standard Chartered has made another bullish prediction for Ethereum. According to analysts from the bank, ETH could see a rise to new all-time highs, driven by the potential introduction of Spot ETH Exchange Traded Funds (ETFs).
ETH Price Set To Rise To $14,000
Analysts at Standard Chartered Bank have maintained an optimistic outlook for ETH, anticipating that the second-largest cryptocurrency could witness an exponential surge to $14,000 by 2025.
Detailed in a Monday note, the analysts revealed key factors that could drive Ethereum towards the predicted price target. Notably, the potential approval of an Ethereum Spot ETF by the United States Securities and Exchange Commission (SEC) is a primary catalyst for ETH’s projected surge.
According to the analysts at Standard Chartered, if the SEC greenlights Spot Ethereum ETFs, ETH could follow a straight road map to $8,000 by the end of 2024 and $14,000 by 2025. The analysts have maintained an optimistic outlook regarding the approval of Ethereum Spot ETFs, anticipating the SEC’s authorization by May 2024.
The firm emphasized yet another significant factor that could propel the price of ETH to $14,000 – Ethereum’s recent Dencun upgrade. Geoffrey Kendrick, Standard Chartered’s Head of Forex and Crypto Research anticipates an influx of demand for the cryptocurrency, citing potential reduction in transaction costs and improvements to the Ethereum blockchain facilitated by upgrade as key drivers.
Ethereum Spot ETFs Projected To Draw $45 Billion
In addition to his bullish projections for ETH, Kendrick has also stated that Spot Ethereum ETFs could trigger a whopping $45 billion in inflows into the market. While there has been a decline in overall optimism regarding the SEC’s potential approval of Ethereum ETFs by May, the analyst has maintained a positive outlook, affirming the possibility of the SEC granting approval for these investment assets by the specified deadline of May 23, 2024.
According to Kendrick’s insights shared with The Block, he has estimated inflows ranging from $15 billion to $45 billion within the first 12 months following the approval of Spot ETH ETFs.
The crypto analyst indicated that he intends to apply the same methodology for estimating Spot Bitcoin ETF inflows in his analysis. His reasoning suggests a similar trajectory for ETH’s future outlook as witnessed with Bitcoin following its ETF approval.
Just as millions of dollars poured into the Spot Bitcoin ETF market after the SEC’s acceptance, a similar scenario could potentially unfold for Ethereum if its ETF is authorized. In such an event, the price of the cryptocurrency could witness a significant rise to new all-time highs, propelled by a surge in investor interest and capital inflows.
ETH price at $3,200 | Source: ETHUSD on Tradingview.com
Featured image from CoinGecko, chart from Tradingview.com
