The chief investment officer of Bitwise, a crypto fund manager, has made a bold prediction about Ethereum (ETH), stating that if spot ETH exchange-traded funds (ETFs) are approved, the cryptocurrency could reach new all-time highs. The U.S. Securities and Exchange Commission (SEC) recently approved a rule change that could pave the way for the introduction of spot market Ethereum ETFs.
During an interview on the Bankless podcast, Matt Hougan expressed his belief that if ETH ETFs were to receive investor inflows, it could amount to billions of dollars and push the price of Ethereum beyond its previous peak of approximately $4,900, which was achieved in November 2021.
Hougan stated, “I don’t expect Ethereum ETFs to reach the same level as Bitcoin ETFs. However, I do anticipate that they will attract investments in the range of billions of dollars… Will this be enough to drive Ethereum to reach new all-time highs? I definitely think it’s possible. If Bitcoin ETFs managed to accumulate $12 billion in their first four months, I believe that Ethereum ETFs will achieve less than half of that but still more than a quarter. And that would be quite significant. It’s important to remember that this demand exists in a market with no new supply. So I believe there is genuine demand.”
Furthermore, Hougan expressed his belief that in the future, there will be ETFs that offer exposure to multiple digital assets, and there will be investor demand for various types of ETFs. He stated, “If I were to estimate the ETF investor market a year from now, I believe that 30% will be exclusively invested in Bitcoin, around 50% will be a mix of different assets, and 20% will solely be focused on ETH… Many professional investors who are exploring the crypto market are seeking technological alpha. They are looking for assets that provide high returns, and Ethereum fits perfectly into that narrative. Therefore, I believe we will see all three types of ETFs, and the entire market will benefit from the introduction of multiple crypto asset ETFs, if that is what we eventually get. This will make the market feel more resilient and tangible, and there will be more to discuss. Overall, I believe this will have a positive impact. These ETFs will be significant.”
At the time of writing, Ethereum is being traded at $3,736, experiencing a decline of over 1% in the past 24 hours.
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