Wall Avenue is preparing for a brand new batch of cryptocurrency exchange-traded funds: ethereum.
Spot ether ETFs may hit the market as quickly as this week, pending U.S. Securities and Trade Fee approval, and Bitwise Asset Administration’s Matthew Hougan plans to get in on the motion.
“What you are seeing is that this kind of the delivery of a brand new asset class,” the agency’s chief funding officer instructed CNBC’s “ETF Edge” on Monday.
Hougan’s agency is making use of for spot ether ETFs.
“If you wish to put money into the expansion of tokenization, ethereum is just like the picks and shovels play,” Hougan mentioned. “It underpins all of it. … I believe that’s going to attraction to lots of people.”
He thinks cryptocurrency ETFs general are a multiyear story. Hougan is referring to the primary spot bitcoin ETFs that launched in January. He sees their success as an excellent indicator of the long run.
“It is [bitcoin] transferring into the mainstream,” he famous. “That is going to be a multiyear story.”
Spot bitcoin ETFs have attracted about $15 billion since their launch and at present maintain two of the highest ETF inflows this yr, based on FactSet.
Hougan views bitcoin’s current success as unprecedented and sees it as a bullish indicator for spot ether ETFs.
“If we get 5 or 10 or 15 billion {dollars} within the first two years of those ethereum ETFs, that could be a huge runaway success,” Hougan mentioned.
