Ethereum ETF Impact: Standard Chartered Expects $8,000 ETH by 2024, BTC Headed to $250,000

• Standard Chartered Bank revised its earlier year-end prediction for Bitcoin from $100k to $150k, saying the asset could hit $250k next year. 

• The bank also predicts that Ethereum could trade at $8000 before the year ends, and proceed to hit $14k next year. 

With bated breath, all eyes have now turned towards the potential approval of the spot Ethereum Exchange Traded Fund (ETF) with feverish anticipation similar to the pre-approval of the Bitcoin-related ETF. Several analysts have predicted that the approval could materialize in May.

In an email investment note, Standard Chartered Bank specifically pointed to May 23 as the expected date for approval. According to them, the first 12 months after this groundbreaking decision could see as high as $45 billion entering the market. Fascinatingly, this could propel the ETH price to a whopping $8000 by the end of the year.

Drawing insight from a recent publication by Crypto News Flash, VanEck expects the ETH-related ETF to have a greater impact than Bitcoin. 

Bloomberg Analysts Revise Their Predictions

Last week, Bloomberg Senior ETF Analyst Eric Balchuna dropped his predicted odds for spot ETH ETF approval in May to 30% from the 70% probability set in January. According to another Bloomberg analyst, James Seyffart, who also dropped his odds from 60-65%, the Ethereum ETF cycle feels the opposite of the Bitcoin ETF approval odds at the moment. Per his assessment, there are a little over 60 days to the deadline, but there seems to be little or no movement. 

For now, the ETH price is in a consolidation phase as it has lost 15% of its value in the last seven days, trading at $3,380. However, its impressive run in the last 30 days still leaves investors with a positive return of 21% on their investments. This current trend somehow invalidates an earlier prediction by an analyst who claimed ETH could hit $5k from the then trading price as reported by Crypto News Flash. 

Standard Chartered Bank’s Prediction on Bitcoin and Ethereum Based on Impact of Gold ETF

According to Standard Chartered Bank, Ethereum would most likely hit $14,000 by the end of 2025. Speaking on Bitcoin, the Bank reviewed its earlier year-end target from $100,000 to $150,000. Interestingly, this bullish run could extend in the subsequent year, settling around an all-time high price of $250,000 in 2025, after which the price would fall to $200,000. 

In 2025, we see the ETH-to-BTC price ratio rising back to the 7% level that prevailed for much of 2021-22. Given our estimated BTC price level of USD 200,000 at the end-2025, that would imply an ETH price of $14,000.

This analysis is reported to have been based on the comparison with the price of gold after the introduction of gold exchange-traded funds (ETFs). Some references were equally made after a critical examination of the correlation between the price of Bitcoin and ETFs. In this case, the predicted price point can materialize when Bitcoin ETF inflows reach their mid-point estimate of $75 billion.

We think the gold analogy – in terms of both ETF impact and the optimal portfolio mix – remains a good starting point for estimating the ‘correct’ BTC price level medium-term. If ETF inflows reach our mid-point estimate of $75 billion, and/or if reserve managers buy BTC, we see a good chance of an overshoot to the $250,000 level at some stage in 2025.

As of press time, Bitcoin had declined considerably from its peak of $73k to $64k. In the last seven days, the asset has lost 9% of its accumulated value, with the price also down by 5% in the last 24 hours.