• Ethereum has jumped over the past 24 hours as odds of an imminent ETF approval have soared.

• Positive signs have come from the SEC, which needs to make a final decision on two proposals this week.

• The approval could also be a catalyst for bitcoin to hit new records, according to Standard Chartered.

Ethereum rocketed 22% higher on Tuesday on surging confidence that ETFs pegged to the cryptocurrency could be approved as soon as this week.

Just as was done for bitcoin in January, efforts have been underway to establish an ethereum spot exchange-traded fund, making the cryptocurrency available to a wider array of investors.

Though investors have long anticipated regulatory pushback, the Securities and Exchange Commission recently asked potential issuers to update their filings, Bloomberg reported. That's a positive sign ahead of decision deadlines for at least two spot ETFs, one from VanEck and the other from Ark 21Shares.

The odds of approval, according to Bloomberg Intelligence ETF analyst Eric Balchunas, jumped to 75% from 25% in a single day on Monday. Meanwhile, odds of approval by May 31 have risen to 61% from 10% on the Polymarket betting platform.

According to Standard Chartered Head of FX Research Geoff Kendrick, ETF approvals would cement ether's chances of reaching $8,000 by this year's end.

The bullish forecast is one he's held since March, arguing that the funds' approval would drive $15 billion to $45 billion worth of inflows into the token. Eventually, ether could hit $14,000 by end-2025, he reiterated in new research on Tuesday.

Further, the ETFs would largely avoid the same situation as bitcoin funds, which have seen outflows and considerable price swings after an initial boom period, he added.

For one, Kendrick says inflow volatility will be minimal because ether lacks investment alternatives that could compete with the ETFs, such as a Microstrategy equivalent. This company's massive hoard of bitcoin means that its stock move in line with the token.

Secondly, big outflows are also less likely to be an issue for ether, Kendrick pointed out. This was a challenge for bitcoin after its ETFs hit markets, as the funds became as major competitor to the pre-existing Grayscale Bitcoin Trust, leading to a bout of selling.

"The ETH Grayscale trust is smaller in percent of market cap than the BTC one was, so any forced selling as occurred with BTC post ETF approval should be less important," Kendrick said in written commentary.

Once ether funds are established, the price highs that it can achieve bode well for bitcoin, Kendrick added. Already, the apex token has jumped as much as 6.7% this week on the back of ether's gains.

"An ETH ETF approval will further legitimise the sector and therefore be BTC positive as well. I would expect a fresh all-time high in BTC by the weekend (through the 14 March USD 73,798 level)," Kendrick wrote.

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