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Ethereum
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May 25, 2024

Spot Ethereum ETF Approval Could Send ETH to a New Record High, Says Bitwise CIO Matt Hougan

By Daily Hodl Staff

The chief investment officer of crypto fund manager Bitwise is predicting new all-time highs for Ethereum (ETH) if spot ETH exchange-traded funds (ETFs) are ultimately approved.

Earlier this week, the U.S. Securities and Exchange Commission (SEC) approved a rule change that sets the stage for the potential green lighting of spot market Ethereum ETFs.

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In a new interview on the Bankless podcast, Matt Hougan predicts investor inflows into ETH ETFs would total billions of dollars and drive ETH beyond its all-time high of about $4,900, which it hit back in November 2021.

“I don’t think Ethereum ETFs will match Bitcoin ETFs. But I do think it will be measured in terms of many billions of dollars…

Will it be enough to drive Ethereum to new all-time highs? I definitely think that’s possible as well. If Bitcoin ETFs did $12 billion in their first four months, I think Ethereum ETFs will do less than half of that but more than a quarter of that. And that’s going to be pretty significant. Remember, that’s against a market with no net new supply. So I think there is real demand.”

Hougan believes that ETFs with exposure to multiple digital assets will also launch in the future and investor demand will exist for the different types.

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“I think if you think about the ETF investor market if I had to put numbers on it a year from now, I think you’ll have 30% of the market that’s Bitcoin only, you’ll have like 50% of the market that’s a mix, you’ll have 20% of the market that’s ETH only…

Many professional investors looking at the crypto market are looking for sort of tech alpha. They’re looking for that high-returning asset. Ethereum fits nicely into that dialogue. So I think you’ll see all three. And I think the market as a whole will benefit from there being multiple crypto asset ETFs if that’s what we get. It makes the market feel more robust, more real. There’s more to talk about. I think it’ll be a net positive. These are going to be significant.”

Ethereum is trading for $3,736 at time of writing, down more than 1% in the last 24 hours.

 

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