FameEX Hot Topics | Standard Chartered Revises Forecast: Skeptical of SEC Approval for Spot Ether ETFs in May

Standard Chartered, previously optimistic about the U.S. Securities and Exchange Commission (SEC) approving spot ether exchange-traded funds (ETFs) in May, has revised its expectations. Initially hopeful due to the January approval of Bitcoin ETFs, the bank's latest stance reflects a tempered view on the immediate prospects for ether ETFs, though it maintains a positive outlook for their future.

Geoffrey Kendrick, head of forex and crypto research at Standard Chartered, elaborated in a recent report that the bank had anticipated a May 23 approval based on parallels drawn from the Bitcoin ETF approval process. Kendrick had expected similar constructive interactions between the SEC and ether ETF applicants, which played a significant role in the Bitcoin ETF approval. However, he noted, "So far, however, no such dialogue has occurred (or at least been made public), suggesting that a May 23 approval date is unlikely."

Despite the setback for a May approval, Kendrick remains optimistic about the broader prospects for cryptocurrencies. He stated, "The gradual removal of negative drivers should allow bullish structural drivers of BTC to take over. A higher BTC price would also boost ETH; and even if the US ETF is not approved in May, the global environment for ETFs continues to improve, and we expect eventual U.S. approval."

The outlook for a May approval of spot ether ETFs has similarly dimmed across the financial industry. Jan Van Eck, CEO of Vaneck, alongside analysts from firms like Ark Invest, does not foresee a green light from the SEC this month. Furthermore, JPMorgan analyst Nikolaos Panigirtzoglou estimates only a 50% chance of approval in May, suggesting that while approval is likely, it may not occur without legal challenges.

Adding to the complexity is the SEC's ambiguous stance on ether. SEC Chairman Gary Gensler has categorized most cryptocurrencies as securities, with the notable exception of bitcoin, but has not definitively classified ether. This uncertainty has recently prompted 48 U.S. lawmakers to demand clarity from Gensler on ether's legal status.

The situation reflects a cautious but evolving regulatory landscape for cryptocurrencies in the U.S., with significant implications for the market dynamics of both bitcoin and ether. As the industry awaits more definite regulatory guidelines, the anticipation of eventual approval for ether ETFs continues to shape strategic decisions within the financial sector.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.