Bitwise CIO Predicts 15 Billion Inflows for Ethereum ETF Within 18 Months Heres Why

Bitwise Asset Management’s Chief Investment Officer, Matt Hougan, predicts that within a few months of receiving approval from the U.S. Securities and Exchange Commission (SEC), the Ethereum (ETH) exchange-traded fund (ETF) will attract billions of dollars in capital inflow.
In a new memo to investors, Hougan states that he expects the net inflow for the first year and a half of the ETH ETF to be at least $15 billion.
“Everyone wants to know how much net inflow the ETH ETF will attract. My answer is: $15 billion in the first 18 months,” Hougan said.
Hougan’s estimate is based on the market value of ETH relative to Bitcoin, the performance of similar products in other markets such as the UK and Canada, and the impact of arbitrage trading strategies.
Arbitrage trading strategies involve market participants buying spot Bitcoin ETF/ETP and then selling Bitcoin futures contracts to profit from the price difference.
Bitwise’s Chief Information Officer added,
“On the other hand, my estimate does not take into account the multiple tailwinds behind Ethereum’s growth, including the rise of stablecoins, increasing regulatory clarity, and the aftermath of Ethereum’s recent London upgrade, which significantly lowers transaction costs. A strong bull market for Ethereum as an asset will significantly increase demand.
Nevertheless, I believe $15 billion in net new demand over the next 18 months is a good starting point. My instincts tell me that we will do even better; ETH is a compelling asset that powers the world’s most versatile blockchain. But even $15 billion of net new demand will have a significant impact on the Ethereum market.”
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