Matt Hougan believes that the influx of capital into a new class of exchange-traded products will be the main catalyst for an increase in the price of ether.
“I am confident that new highs will be reached by the end of the year. And if ETH-ETF flows are stronger than many experts expect, the price could rise even higher than $5,000,” he said.
The top manager drew attention to the fact that the cost of ether will increase only some time after the launch of ETH-ETF. The expert identified the withdrawal of funds from Grayscale Ethereum Trust (ETHE) with a valuation of $11 billion after its conversion into ETP as a possible risk factor that could create selling pressure.
The analyst pointed out some factors that could provoke ether to overcome its historical maximum. According to Hougan, Ethereum validators do not need to sell coins to maintain operations, unlike Bitcoin miners. About 40% of the ETH in circulation is locked in staking and smart contracts, so they are not on the market.
According to Bitwise specialist expectations, ETH-ETFs will be able to attract about $15 billion in the first eighteen months after launch.
