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Bitwise CIO Matt Hougan Says Ethereum Cycle Incoming, Outlines Two Massive Tailwinds for ETH

July 06, 2024

The chief investment officer (CIO) of Bitwise Asset Management, Matt Hougan, is predicting a massive bull cycle for Ethereum (ETH) based on several factors.

In a new interview with Scott Melker, Hougan says that spot Ethereum exchange-traded funds (ETF) could draw $15 billion within 18 months of their approval, which is expected soon.

“So I think it’s a down-the-middle prediction. We could be higher, we could be a little lower, but I think $15 billion is in the bag.”

He also believes two additional bullish factors for ETH could send its value soaring: a greater acceptance of crypto by the US government and Ethereum’s recent network upgrade, Dencun, which aims to reduce costs for layer-2 transactions and data availability.

“I think that these numbers overlook the fact that we’re entering what is usually the ETH cycle. They also overlook two huge tailwinds that I see for ETH, which is it had a lot of regulatory uncertainty, and over the last two months, a lot of that has gone away.

Not only did we get movement forward on ETFs, but we also saw Washington generally change its tune on crypto. That’s a massive tailwind for ETH. And then you have the aftereffects of the Dencun upgrade, which I don’t think the market has fully recognized what that will mean for this market.”

Ethereum is trading for $2,974 at time of writing, down 3.6% in the last 24 hours.

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