Investors hoping for a May launch of Ether (ETH) exchange-traded funds (ETFs) in the US might be disappointed. Standard Chartered, a prominent investment bank, has revised its forecast and now predicts a delay in regulatory approval.
Previously, Standard Chartered anticipated the Securities and Exchange Commission (SEC) greenlighting Ether ETFs by May 23rd, 2024. This optimism stemmed from the recent approval of Bitcoin ETFs in January and the expectation of similar efficient processing for Ether ETFs.
However, their outlook has changed. Analysts point to a lack of engagement from the SEC with Ether ETF applicants. Unlike the lead-up to Bitcoin ETF approvals, the SEC hasn’t actively discussed Ether-specific concerns with potential issuers. This silence and recent delays in Ether ETF approvals have dampened hopes for a May launch.
What Does This Mean for Investors?
While the wait for Ether ETFs might be extended, Standard Chartered remains optimistic about their eventual approval. The long-term potential for Ether ETFs in the US market is still considered positive.
This delay shouldn’t necessarily be interpreted as a negative sign for the price of Ether itself. Standard Chartered maintains its year-end price target of $8,000 for Ether, suggesting confidence in the cryptocurrency’s overall trajectory.
Traditional vs. Crypto Investment
Ether ETFs offer a regulated and potentially more familiar avenue for investors seeking exposure to Ether without directly entering the cryptocurrency market. However, the delay highlights the difference in regulatory processes between traditional and crypto markets.
Keeping Up with the Latest
The cryptocurrency landscape is constantly evolving, and regulations are still catching up. Investors interested in Ether ETFs should stay informed about the ongoing developments with the SEC and potential launch dates.
