Bitwise Asset Management’s CIO, Matt Hougan, has called for a delay in the approval of spot Ethereum-ETF applications until December 2024, as reported by Forbes.
Hougan notes that the growth rate of spot ETFs based on Bitcoin exceeded the company’s expectations. These investment products attracted more than $10 billion in the first two months, even considering the outflow of funds from the Grayscale Investments fund. He also mentions a significant interest in the sector from investors. Retail customers, independent financial advisors, and large hedge funds are investing in spot Bitcoin ETFs, according to the company’s CIO.
The expert believes that Bitcoin, against the backdrop of the launch of crypto funds, has a “clear path” to a value of $100,000. At the same time, Hougan is uncertain about Bitcoin’s behavior after reaching this mark. He speculates that by that time, demand may decrease, and many investors may want to sell the asset at such a high price.
The Bitwise CIO also stated that the hype around cryptocurrency ETFs based on Bitcoin will not allow investment firms to concentrate enough attention on launching products based on Ethereum. For this reason, he proposes to postpone the approval of another asset class until December. Hougan asserts that Bitwise intends to become a major player in this direction. The company is interested in launching spot Ethereum-ETFs but does not want to rush. The company representative does not see a real possibility for the approval of this asset class in May 2024.
“I think Ethereum will be very attractive [for investors]. I believe that ETFs based on it will be more successful if they are launched in 12 months than if they get approval in May. I understand it sounds silly, but I think TradFi is still digesting Bitcoin. If you give the industry time to get comfortable with Bitcoin and crypto assets, they will be ready for the next step,” Hougan said.
It is worth noting that the company filed an application for a spot Ethereum-ETF at the end of March 2024. In the form S-1, submitted to the U.S. Securities and Exchange Commission, it is stated that the Bitwise Ethereum ETF is an exchange product that issues ordinary shares. Its aim is to provide access to digital currency owned by the trust.
