The post Ethereum ETFs May Propel ETH to Record Highs, Says Bitwise CIO appeared on BitcoinEthereumNews.com.

The U.S. Securities and Exchange Commission (SEC) ‘s approval of spot Ethereum ETFs has set the stage for potential new all-time highs for Ethereum (ETH). Matt Hougan, Chief Investment Officer of Bitwise, predicts that investor inflows into these ETFs will drive ETH beyond its previous peak of about $4,900, reached in November 2021. Ethereum ETFs Approval to Attract Billions in Inflows Earlier this week, the SEC approved a rule change that paved the way for spot market Ethereum ETFs. Following this, the regulatory agency approved Ethereum ETF issuers. Hougan predicts that investor inflows into ETH ETFs will amount to billions of dollars. He believes this influx will significantly impact the market, potentially pushing ETH to new record highs. In an interview on the Bankless podcast, Hougan emphasized that although Ethereum ETFs might not match Bitcoin ETFs in terms of inflows, they will still attract substantial investment. He noted that Bitcoin ETFs saw $12 billion in inflows within the first four months. Hougan expects Ethereum ETFs to achieve less than half of that but more than a quarter, indicating significant demand for these financial products. Hougan Predicts Growth in Crypto ETFs Hougan also believes that ETFs with exposure to multiple digital assets will launch in the future, meeting diverse investor needs. He envisions a market where a mix of Bitcoin-only, ETH-only, and multi-asset ETFs will coexist. This diversity will cater to different investor preferences, from those seeking the high returns of Ethereum to those looking for a balanced crypto portfolio. Hougan argues that the launch of multiple crypto asset ETFs will benefit the market as a whole. He predicts that about 30% of the market will be Bitcoin-only, 50% a mix, and 20% ETH-only. This variety will make the market feel more robust and real, providing investors with more options and…

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Filed under: News - @ May 26, 2024 1:04 am