The chief investment officer of cryptocurrency fund manager Bitwise predicts that Ethereum (ETH) will reach new all-time highs if a spot ETH exchange-traded fund (ETF) is ultimately approved.
Earlier this week, the U.S. Securities and Exchange Commission (SEC) approved rule changes that could increase the likelihood of approval for a spot market Ethereum ETF.
In a new interview on the Bankless podcast, Matt Hogan predicts that investor inflows into ETH ETFs will total billions of dollars, propelling ETH past its all-time high of around $4,900 hit in November 2021.
“I don’t think an Ethereum ETF will ever rival a Bitcoin ETF, but I do think it will be valued in the billions…
Will that be enough to propel Ethereum to an all-time high? I definitely think it could. If the Bitcoin ETF made $12 billion in its first four months, the Ethereum ETF is less than half that, but I think it could make more than a quarter. That's a pretty big number. Keep in mind, this is against a market with no net new supply. So I think there's real demand.”
Hogan believes we may see the launch of ETFs that invest in multiple digital assets in the future, as investors will have demand for a variety of types.
“If I were to put a number on the ETF investor market a year from now, I would say 30% Bitcoin-only, 50% mixed, and 20% ETH-only…
A lot of professional investors who are looking at the crypto market are looking for some kind of tech alpha. They're looking for assets that are high-yielding. Ethereum fits nicely into that discussion. So I think we'll see all three. And if that happens, I think the market as a whole will benefit from the existence of multiple crypto asset ETFs. The market will be more robust, more real. There will be more buzz. I think that's going to be a positive overall. These are going to be significant.”
At the time of writing, Ethereum was trading at $3,736, down more than 1% in the past 24 hours.
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