Bitwise CIO Predicts Ethereum ETF Inflows Will Push Price To $5,000

According to Matt Hougan, the Chief Investment Officer at asset management firm Bitwise, the introduction of spot Ethereum Exchange Traded Funds (ETFs) is poised to significantly impact Ether’s market value, potentially driving it to unprecedented highs exceeding $5,000. Hougan believes that while this surge won’t occur instantly, the inflow from these ETFs could propel Ether’s price over time.

Hougan Belives Spot Ether ETF Inflow Will Surpass Bitcoin

Hougan’s analysis suggests that spot Ether ETFs launch may affect Ether more than similar products affected Bitcoin. This is because of the different market dynamics and Ethereum’s current development stage. Hougan also emphasized that Ether could outperform Bitcoin in the context of ETF inflows.

Hougan pointed out that when Bitcoin ETFs were introduced, they provided a significant price boost, but the potential impact on Ether could be even more substantial. Meanwhile, spot Ether ETFs are expected to start trading in the United States on July 23 following the Securities and Exchange Commission (SEC) approval earlier this year. 

The SEC has approved 19b-4 forms from Bitwise, Invesco Galaxy, Ark Invest, BlackRock, Fidelity Investment, Grayscale, VanEck, and Franklin Templeton on May 23. However, the regulator has asked the issuers to return S-1 filings, including fees.

Bitwise CIO Unveils 9 Tailwinds for Ethereum’s Growth

Recall that Hougan shared nine significant tailwinds that could drive ETH adoption and growth in the second half of 2024. According to him, one of the primary factors is the anticipated surge in demand resulting from the launch of Ethereum ETFs trading. Hougan also highlighted the constrained supply market, confirming this metric is limited to zero net issuance. 

Furthermore, he emphasized improved regulatory developments, saying that clarity and favorable regulation can enhance investor confidence and participation in the Ethereum ecosystem.  In summary, the chief investment officer highlighted cycle timing, macro conditions, and the upcoming presidential elections as other tailwinds. These he believes will create a self-reinforcing cycle of adoption and growth.

Ethereum Reaches New ATH in Transactions Per Second

In June, the Ethereum network achieved a novel milestone, hitting an all-time high (ATH) in transactions per second. The industry cited a huge increase in activity on an Ethereum layer-3 network, as the reason for this milestone.

According to data from L2beat, the protocol’s scaling networks, including layer-2 and layer-3 blockchains, recorded 246.18 TPS. this means 21.2 million transactions were executed within a day, reflecting the user-friendly and robust scalability enhancements recently included in the Ethereum network.

A substantial portion of these transactions on Ethereum, over 41%, occurred on Xai, a newly emerging layer-3 scaling solution focused on gaming applications.