Standard Chartered SEC Predictions To Approve Ethereum Spot ETF In May 2024

Ethereum, the second largest crypto asset by market cap after Bitcoin. (Photo; Doc. Livecoins)

JAKARTA - Standard Chartered, one of the largest banks in the UK, recently released a report predicting that the SEC, the United States capital market regulator, would approve Ethereum's spot ETF in May 2024 after regulators approved Spot's Bitcoin ETF in January.

The report is based on analysis of the time limit given by the SEC to make decisions regarding Ethereum's ETF spot applications from three companies, namely Ark Invest, 21Shares, and VanEck. The SEC has until May 23, 2024 to approve or reject the request.

Standard Chartered also compared Ethereum's spot ETF approval process with Bitcoin's spot ETF, which was approved by the SEC in January 2024. The bank argues that both types of ETF have similarities in terms of legal and financial status, so it is likely to experience the same pattern of approval.

Geoff Corn, head of the research unit FX Standard Chartered, said that Bitcoin and Ethereum have been recognized by the SEC as distinct assets of securities, so they are not bound by strict rules. In addition, the two cryptocurrencies already have a future-based ETF, which is a derivative product traded on the Chicago Mercantile Exchange (CME). This future-based ETF has gained approval from the previous SEC.

Thus, Standard Chartered suggests that the SEC is likely to approve Ethereum's spot ETF, which is a simpler and more transparent investment product than the future-based ETF. Ethereum's spot ETF will provide investors with direct access to the price of Ethereum, without having to buy or store the cryptocurrency directly.