Matt Hougan: Ethereum Spot ETFs Could Attract $15B by 2025

Bitwise Matt Hougan Ethereum ETFs
Spot Ethereum exchange-traded funds (ETFs) are eagerly anticipated within the United States crypto community, with analysts predicting substantial capital inflows into the market. According to Bitwise’s Chief Investment Officer Matt Hougan, these ETFs could attract significant investment, potentially reaching $15 billion in net flows within their first 18 months of trading.

Matt Hougan‘s projection is based on a comprehensive analysis comparing Ethereum’s market capitalization to Bitcoin’s, insights from the international crypto ETP market, Grayscale’s Ethereum Trust (ETHE) conversion, and the performance of spot Bitcoin ETFs.

He expects investor allocations to Ethereum and Bitcoin ETFs to align closely with their respective market caps. Currently, U.S. investors have approximately $56 billion in spot Bitcoin ETPs, a figure expected to rise to $100 billion by 2025 as these ETFs mature and gain approval on major platforms like Morgan Stanley.

Factoring in Grayscale’s $10 billion Ethereum Trust conversion to an ETF, Matt Hougan estimates that spot Ethereum ETFs could see a net flow of around $25 billion. However, considering international market trends where Bitcoin ETPs typically dominate with 78% of total assets compared to Ethereum’s 22%, he revises this estimate downward to around $18 billion for Ethereum ETFs.

Matt Hougan also examines the impact of the “carry trade” strategy on Ethereum ETFs, noting concerns about its absence due to the staking process specific to Ethereum. This analysis leads to a conservative estimate of $15 billion in net inflows for Ethereum ETFs by the end of 2025.

Meanwhile, several prospective issuers are finalizing their registrations following SEC approval in May, with spot Ethereum ETFs expected to begin trading as early as July 2.

Also Read: $20 Trillion Baby Boomer Wealth Transfer Could Push Bitcoin to $600,000

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