Matt Hougan, Chief Investment Officer at Bitwise Asset Management, painted a bullish picture for Ethereum (ETH) in a recent interview with Scott Melker. Hougan pointed out two key drivers that could propel the second-largest cryptocurrency by market cap into higher valuation territory in the near future.
Hougan anticipates that the imminent approval of Ethereum exchange-traded funds (ETFs) could attract approximately $15 billion in investments over the next 18 months. “I see it as a conservative estimate. We might exceed it, or fall a bit short, but $15 billion seems quite feasible,” he remarked.
In addition to the ETF optimism, Hougan underscored two other favorable factors that could further enhance ETH’s value. Firstly, he noted a notable shift in the United States government’s stance towards cryptocurrencies, which could bolster Ethereum’s position. “Besides the ETF progress, there’s been a perceptible shift in Washington’s attitude towards crypto. This is definitely positive for ETH,” he emphasized.
The second factor highlighted by Hougan is the recent upgrade of the Ethereum network known as Dencun. This upgrade specifically aims at reducing transaction costs on layer 2 and enhancing data availability. Hougan believes that the market has yet to fully grasp the potential positive impacts of this update. “Then there’s the ripple effect from the Dencun upgrade, which I think the market hasn’t fully priced in yet,” he added.
Hougan’s positive outlook reflects a growing optimism surrounding Ethereum, driven by improving regulatory clarity and recent technological advancements promising greater efficiency and scalability for the network.
Disclaimer: The views expressed by Matt Hougan and others in this article are for informational purposes only and should not be construed as financial or investment advice. Investing in cryptocurrencies carries inherent risks.
Editor’s Choice: Ethereum Could Reach New Heights in 2024? Analyst Predicts Surge in ETH Price
SEC Approves Bitcoin-Ethereum ETF for Immediate Launch; Details