Business Insider
Hey folks.
According to Matt Hougan, Bitwise Chief Investment Officer, US Spot Ether Exchange-traded funds will have a bumpy start but could have a larger impact on the price of asset than Bitcoin ETFs did for Bitcoin.
Hougan said, “The first few weeks could be choppy, as money may flow out of the $11 billion Grayscale Ethereum Trust (ETHE) after it converts to an ETP".
Additionally, he said, “By year-end, I’m confident the new highs will be in,” repeating not to expect notable results "immediately" given the potential selling pressure like what spot BTC ETFs experienced upon trading launch on Jan, 11.
The reason Hougan gave why he thinks Eth ETFs will have a larger impact on the price of asset is because the inflation rate of Ether effectively amounts to zero, given the extensive usage of Ethereum-based applications compared to the "small amount of ETH" created daily.
Hougan's remarks coincide with rising interest in the spot Ether ETH ETF launch, which Eric Balchunas, a Bloomberg ETF analyst, said is scheduled to occur on July 23.
According to CoinMarketCap data, Hougan thinks that the product would raise Ether's price to $5,000 by the end of 2024, which would be a 47% rise from its current price of $3,401.
Not financial advice.
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