According to PANews, Matt Hougan, Chief Investment Officer at Bitwise, predicts that by the end of 2025, Ethereum ETP could bring in a net inflow of $15 billion. This would make Ethereum ETP one of the most successful ETPs in history. However, Ethereum ETP still falls short when compared to Bitcoin ETP, which has attracted $14 billion in net inflow in less than six months. Hougan anticipates that this figure will surge to over $50 billion by the end of 2025, with the involvement of financial giants like Morgan Stanley and Merrill Lynch.
Considering market value, Bitcoin is three times the size of Ethereum, making it reasonable for Bitcoin ETP to attract three times the funds of Ethereum ETP. However, Hougan believes that Ethereum ETP could perform far beyond his expectations if things develop differently.
Ethereum is likened to high-growth tech stocks. While Bitcoin is designed as a new type of currency asset, competing with gold, the dollar, and other legal currencies, Ethereum is structured as a technological platform. It is a fully programmable blockchain and the cornerstone of new crypto applications such as tokenization, stable coins, and decentralized finance.
The economic principle of Ethereum is simple: as more people use these applications, the value of the Ethereum blockchain asset ETH will increase because you must pay ETH to use the platform. This is why Hougan suspects that Ethereum ETP's performance may exceed expectations. After all, investors love tech stocks. Almost all investors have invested in high-growth tech stocks like Nvidia and Meta, while relatively fewer invest in currency assets like gold.
Hougan suggests that if investors sell a small amount of tech stocks and increase their holdings in ETH, they might prefer to hold Ethereum as a tech-type asset rather than investing in a new currency asset. Therefore, it is necessary to bring the core concept of Ethereum (that is, ETH is a technology investment) to mainstream attention. To achieve this, two things need to be done: 1) More people need to understand the difference between Ethereum and Bitcoin; 2) Some applications built on Ethereum need to gain mainstream attention.