Ethereum spot ETF approvals will attract billions in inflows shortly, according to Matt Hougan, Bitwise Asset Management’s CIO.
In the latest investor note, Hougan even predicts $15 billion in net asset inflows into ETH ETFs in the first 18 months.
ETH market capitalization, Bitcoin comparison, similar products in the UK and Canada, and the impact of the carry trade strategy are some of the assumptions made by Hougan.
The carry trade strategy entails purchasing spot BTC ETFs/ETPs and short-selling Bitcoin futures for a difference in price.
The Bitwise CIO further avers,
“On the other hand, my estimate doesn’t take into account the multiple tailwinds behind Ethereum’s growth, including the rise of stablecoins, growing regulatory clarity, and the aftereffects of the blockchain’s recent Dencun upgrade, which dramatically lowered transaction costs on Ethereum. A strong bull market for ETH as an asset would significantly increase demand.”
