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Spot Ether ETFs Show Cryptocurrency Is a ‘Major Asset Class’: Bitwise CIO
Spot Ether ETFs made their trading debut today, and Bitwise CIO Matt Hougan is joining Josh Lipton on the demand for a trend to break down the demand levels observed for products exposed to Ethereum (ETH-USD) some products
“We already know, because we can see it in the trading volume, that there is significant demand for these ETFs. Collectively, they have traded over $1 billion, which is probably the second largest ETF launch in terms of trading volume in the history of ETFs. So there is significant demand,” Hougan says. He notes that demand will likely come from retail investors and crypto-native investors; however, he notes that there is likely strong demand from financial advisors.
He expects demand for Ether ETFs “to be in the range of 20% to 30% of that of spot Bitcoin ETFs.” He points out that “Bitcoin ETFs were by far the largest ETF launch of all time… They generated $17 billion in assets in their first six months alone.”
“If we see 20% to 30% of those flows going into these Ethereum ETFs, that’s a game changer for Ethereum. It shows that crypto is a major asset class and that’s a huge win. So that’s what I’m expecting,” Hougan says. He believes Ethereum is “one of the most exciting technology platforms in the world today,” as it’s an area that’s seeing significant venture capital activity. He also notes that it’s an uncorrelated asset and despite its volatility, it has the potential for high returns in a diversified portfolio of stocks and bonds.
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This article was written by Mélanie Riehl