According to Matt Hougan, chief investment officer at Bitwise, U.S. ether exchange traded funds are off to a rough start but could have a bigger impact on asset prices than BTC bitcoin funds.
the first few weeks could be bumpy as there could be outflows after the $11 billion Grayscale #BTC Trust (ETHE) turned into an ETP.
I'm confident we'll hit new highs by the end of the year, he added, reiterating that we shouldn't expect significant gains "immediately" as there could be selling pressure similar to what the #ETF Spot #BTC (BTC) faced after trading began on January 1111.
Houghan cited three main reasons why he believes Ether ETFs will have a greater impact on asset prices: Ether inflation is virtually zero, and the widespread adoption of Ethereum-based applications is comparable to the "small amount of ETH" created each day.
Moreover, bitcoin miners are forced to sell their bitcoins to stay in business because they are "expensive, requiring high-tech computer chips and lots of power.
In contrast, those who bet on #BTC do not have "significant direct costs.
Another reason is that about a third (28%) of all ETH is pledged and locked up for a period of time. Currently, 28% of all ETH is pledged, meaning it is not actually for sale.
According to Bloomberg ETF analyst Eric Bartunas, Hougan's comments came amid high expectations for the Spot Ether ETF (ETH), which is scheduled to debut on July 23.
According to CoinMarketCap, Hougan expects the price of Ether to exceed $5,000 by the end of 2024, up 47% from the current level of $BTC Houghan noted that this forecast could be conservative if the influx of funds exceeds market expectations.
if inflows are stronger than many market commentators expect, the price could rise, he said, echoing the prediction of crypto trader Daan Crypto Trade (a pseudonym), who believes the potential inflows into the Ether ETF are undervalued.
Meanwhile, pseudonymous crypto trader Kaleo has an opposite viewpoint than Daan Crypto Trades.
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