Matt Hougan, CIO of Bitwise Asset Management, has made a bold prediction: Ethereum could see an influx of $15 billion within the first 18 months of launching spot ETFs (Exchange Traded Funds). This optimism comes despite some skepticism surrounding these ETFs.
Hougan identifies two key factors driving his confidence. Firstly, he observed a lack of excitement surrounding the launch, with some even predicting their failure. However, historical data from established markets like Europe and Canada, along with investor behavior on platforms like Coinbase and Binance, suggests a strong appetite for Ethereum investment.
Secondly, Hougan highlights a conversation with a major advisory firm managing over $100 billion. This conversation made him realize the potential for significant investment based on the established correlation between Bitcoin and Ethereum's market share. Analyzing this data, Hougan concluded that $15 billion is a reasonable, though not guaranteed, prediction for Ethereum investment within the timeframe.
This outlook challenges the narrative of a high correlation between Bitcoin and Ethereum. Hougan argues that their historical correlation is only around 5%, primarily during a specific period of Federal Reserve intervention.
Overall, Hougan's prediction paints a bright picture for Ethereum's future. While the actual figure remains to be seen, his analysis highlights a growing institutional interest in Ethereum, potentially fueled by the launch of spot ETFs.
July 2024, Cryptoniteuae