At the European Blockchain Convention in Barcelona, Chief Investment Officer of Bitwise, Matt Hougan, was optimistic about the future of spot Ethereum ETFs even though it may take a few years to get off the ground as much as it is expected.
At a conference organized for Finnish investors on September 25, he said “in jest” that perhaps ETH exchange traded funds came out too early. Also, as Hougan stated, Wall Street was still embracing the newly launched Bitcoin ETFs while the very first spot Ether ETFs were being launched.
They would have raised five times more assets if we had waited another year. It takes people a long time to digest Bitcoin and be ready for the next thing.
Matt Hougan, Bitwise CIO
The first spot Ether ETFs commenced trading in late July this year, more than five months after the SEC had approved for the first time Bitcoin based ETF products.
Ethereum ETF Applications Face Outflows
However, the SEC has only accepted filings of BlackrRock’s spot Bitcoin ETF whereas several applications for options on Ethereum ETF options had already been made. Fifteen months after the SEC authorized Bitcoin ETF options, it has now deferred its judgment on Ethereum ETF options until this coming November.
According to market analysts, Grayscale’s existing ETH funds have also seen outflows which have hindered the emergence of Ethereum ETFs. Nevertheless, Hougan took a more positive stance, forecasting that these ETFs will in due course become attractive to the traditional finance crowd.
At this midterm, Ethereum ETFs recorded over $624 million in terms of net assets lost. The group led by Blackrock control investments worth slightly over$ 7.2 billion.
Looking into the future, Hougan believes that the availability of spot Ethereum ETFs will improve with the Ethereum narrative. Whereas Bitcoin has been accepted as a “digital gold” and has helped Solana with its fast transactions, ETH according to Hougan has found it hard to keep up.
Meanwhile, over the last few weeks, Ethereum made a move of 14% which helped it move its price upwards above the level of $2,600. Some analysts believe that the second-largest virtual currency could post bullish trends in quarter four as the Federal Reserve may seek to cut interest rates and the overall crypto market may become more bullish.
