Ethereum (ETHUSD)

[ap17]

THIS IS WHAT HAPPENS NEXT 📈
No one expected that the Ethereum ETFs were actually going to be approved.

It caught everyone off guard.

That’s the latest out from Matt Hougan.

Matt Hougan
Matt Hougan is the Chief Investment Officer at Bitwise, the 4th largest Bitcoin ETF issuer.

Safe to say he knows a thing or two about crypto ETFs…

However, in his latest interview, Matt explains that even Bitwise was caught off guard by the Ethereum ETF approval:

“No one expected an approval a week ago. As issuers, we were not moving towards approval, we had effectively stopped work on developing materials around an Ethereum ETF because there had been no back and forth with the SEC.”


Matt Hougan
And just as ETF analyst James Seyffart noted, Matt also believes this approval was politically motivated.

Recently, there’s been a complete attitude change in Washington:

SAB121 reversal vote - democrats supported revoking SEC rule

FIT21 passing congress - 70+ democrats voted in favour

But what happens next?

Well now we sit and wait for the S-1 approvals.

Matt explains:

“There’s another document called an S-1… The role of that document is to explain all the risks and disclosures around any investment. That still needs to be approved… That process can take weeks, it can take months, it doesn’t take days, it does take a little bit of back and forth. After [S-1 approval] happens you should see these ETFs launch either a day or two later.”


Matt Hougan
Expect to see S-1 amendments flowing through in the next couple of weeks.

Matt also gave a prediction on the amount of inflows we can expect to see once the Ethereum ETFs launch:

“I don't think Ethereum ETFs will match Bitcoin ETFs. Could we get $5 billion in inflows by the end of the year? I certainly think that’s possible. Could there be significantly more in future years? I definitely think that’s possible. Will it be enough to drive Ethereum to all time highs? I definitely think that’s possible as well.”


Matt Hougan
Bitcoin ETFs did ~$13.6 billion in their first 4 months.

(keep in mind, this amount of inflows broke every single ETF record ever…)

Matt predicts that the Ethereum ETFs will do less than half but more than a quarter of Bitcoin’s flows.

And that’s against a market with no net new supply…

(Ethereum’s burn mechanism makes it deflationary in the long-run)

That’s a BIG deal. 😎