The global bank, Standard Chartered, has predicted that the value of Ethereum could rise to $14,000 by 2025 and possibly reach $8,000 by the end of this year.
The bank’s forecast is primarily based on the potential approval of spot Ethereum exchange-traded funds (ETFs), a decision that could significantly impact Ethereum’s value by attracting new investors and increasing trading volume.
However, the inherent unpredictability of financial regulatory bodies means that these forecasts come with a degree of uncertainty.
There has been a notable increase in applications to the U.S. Securities and Exchange Commission (SEC) from leading fund managers seeking to launch Ethereum ETFs. They are looking to diversify cryptocurrency investment vehicles, capitalising on the growing popularity of Ethereum in the digital asset market and expanding the exposure for investors.
Ethereum’s current value sits around $3,500 per unit, and if the SEC approves the ETFs, its value could get a significant boost due to the expected wider level of participation from both institutional and retail investors. The SEC’s decision on these applications is eagerly awaited and could come as early as this summer.
Another key aspect fuelling investor optimism surrounding Ethereum is its growing adoption in the tech industry. The expected approval of Ethereum ETFs could notably increase the cryptocurrecy’s market accessibility and liquidity, driving its price even higher.
However, potential investors should always conduct thorough research and risk assessment before making any decisions as the market is ever-changing, and prices can be volatile.
The ‘Dencun’ upgrade, coupled with the expected approval of Ethereum ETFs, are seen as the primary factors influencing Ethereum’s price according to Geoffrey Kendrick, head of forex and crypto research at Standard Chartered. He believes that these developments could potentially contribute to increased demand, thereby escalating Ethereum’s price.
Currently, Bitcoin is also predicted to soar to a value of $150,000 per unit by year-end, owing to the robust performance of the 11 SEC-endorsed ETFs. These ETFs have already significantly boosted Bitcoin’s price. It will be interesting to see whether Standard Chartered’s predictions stand the test of time and market volatility.
