ETH Price Index and Live Chart – CoinDesk”>(ETH), the second-largest cryptocurrency by market value, could rise nearly 70% from current levels and hit $4,000 by May as applications for spot-based exchange-traded funds (ETF) will likely win regulatory approval in the U.S., Standard Chartered Bank said in a report on Tuesday.

StanChart’s analysts, led by Geoff Kendrick as research director, expect the U.S. Securities and Exchange Commission to delay its decision on spot ETF applications – just like it did for Bitcoin – until the SEC gives the green light for the first deadline. The SEC will delay decisions on spot ETF applications until the first final deadline, which is May 23, has been set.

According to the report the market is currently underestimating the chances of approval. However, the bank believes that there is “no reason fundamental” why the SEC should treat ETH differently from bitcoin. The report noted that ETH futures were also listed on the regulated Chicago Mercantile Exchange, and the SEC didn’t include ETH in its list of 67 cryptocurrencies it claims are securities when fighting against Ripple.

BTC Price Index and Live Chart – CoinDesk”>(BTC) during the comparable period,” wrote Kendrick and team.

BTC jumped 85%, from $25,000 to $47,000 in just a few months after the approval of spot ETFs on January 10th.

The report said that ETH will face less pressure to sell after a possible ETF approval, than BTC. This is because the Grayscale Ethereum Fund has a smaller share of the ether market cap than the Grayscale Bitcoin Fund.

Read more: FTX sold about $1B Grayscale’s Bitcoin ETF, explaining much of the outflow

Bitcoin fell as low as $38500 last week, from a high of $49,000 on January 11, when BTC ETFs began trading. Market observers pointed to GBTC’s fire sales with around $5 billion in outflows ever since it was converted into an ETF.

StanChart also stated that the first ether ETFs to be launched in the U.S. are likely to track the spot price of ETH and will not include stake rewards.

Stephen Alpher edited the book.