The Bitwise executive believes that if the Ethereum ETFs reach the expected level of inflow, it is difficult to see ether not challenging its previous record.
Matt Hougan, Bitwise Asset Management’s Chief Investment Officer (CIO), has predicted that launching the Ethereum Exchange-Traded Fund (ETF) will propel ether (ETH) prices to new levels, exceeding $5,000.
Hougan noted that the first few weeks could be “choppy,” with funds possibly moving out of the $11 billion Grayscale Ethereum Trust (ETHE) following its conversion to a spot ETF.
“But by year-end, I’m confident the new highs will be in. And if flows are stronger than many market commentators expect, the price could be much higher still,” he said.
According to crypto news media CoinTab, the spot Ethereum ETFs will likely start trading on July 23. Recall that on May 23, the United States Securities and Exchange Commission (SEC) approved eight 19b-4 applications for spot Ethereum ETFs submitted by Bitwise, BlackRock, Fidelity, VanEck, Ark Invest, Invesco, Franklin Templeton, and Grayscale.
ETFs to Have a Significant Impact on ETH: Hougan
Hougan expects ETH to react similarly to how BTC reacted when spot Bitcoin ETFs started trading. According to him, since the launch of spot Bitcoin ETFs, the funds have collectively acquired 263,965 BTC, which is more than twice the 129,281 BTC mined during the same period.
The Bitwise executive noted that BTC has surged by approximately 40% since the ETFs were approved on January 11. He expects the impact on ether to be even greater.
Hougan had earlier predicted that spot Ethereum ETFs would draw in $15 billion in net inflows within their first 18 months, a slower pace compared to Bitcoin ETFs, which achieved this net inflow milestone in only five months of trading.
“Even if Ethereum’s inflation rate rises above 0%, I do not expect significant selling pressure from stakers,” he said.
The Bitwise CIO believes that if spot Ethereum ETFs achieve the anticipated level of inflows, “it’s hard to imagine ether not challenging its old record.”
ETH is currently trading at $3,464.33, according to CryptocurrenciesToWatch, with a market cap of 414.32 billion as of the time of writing.
