A top executive at digital asset management firm CoinShares believes Ethereum (ETH) could soon see a surge depending on market conditions.
In a new interview with Scott Melker, CoinShares head of research James Butterfill said that the Fed’s upcoming policy shift could be bullish for both Bitcoin (BTC) and ETH.
Butterfill said the potential launch of a spot market ETH exchange-traded fund (ETF) and a supply shortage due to investors already holding large amounts of top altcoins could help Ethereum see further upside momentum around the time the Fed starts cutting interest rates.
“Looking at the futures markets, interest rate expectations are pointing to an initial rate cut. [is] It won't be until December. I think the first rate cut will be bigger than expected and will come later than expected, meaning it will be a knee-jerk reaction…
For something like Bitcoin, which is very sensitive to interest rate expectations, this would actually be very bullish…
It's certainly interesting with Ethereum. There is very little Ethereum in circulation because a lot of people are staking it. The new ETF, probably when it launches in July, won't be able to be staked, so there could be a supply shortage, which could lead to a sharp rise in price.”
At the time of writing, Ethereum was trading at $3,761, down more than 2% in the past 24 hours.
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