Matt Hougan, the Chief Investment Officer at Bitwise Asset Management, is optimistic about the potential of spot Ethereum (ETH) exchange-traded funds (ETFs), predicting they could attract a substantial influx of investment shortly after receiving the green light from the U.S. Securities and Exchange Commission (SEC).

In a recent investor briefing, Hougan expressed his expectation for a minimum of $15 billion in net inflows into ETH ETFs within the first 18 months of their approval. He stated, “The question on everyone’s mind is the amount of net inflows spot ether exchange-traded products (ETPs) can generate. I believe we’re looking at $15 billion in the initial year and a half.”

Hougan’s forecast is grounded in the comparison of ETH’s market capitalization with that of Bitcoin, the performance of analogous products in markets like the UK and Canada, and the influence of the carry trade strategy. This strategy entails investors purchasing spot Bitcoin (BTC) ETFs/ETPs and selling Bitcoin futures contracts to capitalize on the price differential.

Adding further insight, Hougan mentioned, “However, my projection doesn’t factor in the various positive developments propelling Ethereum’s growth, such as the ascent of stablecoins, enhanced regulatory clarity, and the positive impact of Ethereum’s recent Dencun upgrade, which significantly reduced transaction fees on the network. A robust bull market for ETH would undoubtedly amplify demand.”

He continued, “While $15 billion in the forthcoming 18 months serves as a solid baseline, my instincts suggest the actual figure could surpass this. ETH represents a compelling investment, underpinning the most adaptable blockchain in existence. Nonetheless, even an influx of $15 billion in new demand would profoundly influence the Ethereum market.”

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Disclaimer: The views expressed by The Daily Hodl do not constitute financial advice. Before engaging in high-risk investments in Bitcoin, cryptocurrencies, or digital assets, investors are advised to conduct thorough research. It is important to note that all transactions and trades are the responsibility of the investor, and any resulting losses are solely the investor’s liability. The Daily Hodl neither endorses the purchase or sale of any cryptocurrencies or digital assets nor acts as an investment advisor. The Daily Hodl is involved in affiliate marketing programs.

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