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

By The Daily Hodl May 26, 2024 In Bitcoin, Ethereum

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.

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.

“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.

Generated Image: DALLE3

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