With the Ethereum ETF set to debut next week, the market is waiting to see how its impact compares to that of Bitcoin. Indeed, BTC became the first crypto to get spot ETF approval in the United States, breaking the US Securities and Exchange Commission’s (SEC) rejection streak in January.
There is no denying the impact that Bitcoin had on the market after its debut. Just three months after launch, the leading crypto surged to a $73,000 price, setting a new all-time high mark. Yet, one expert predicts that the upcoming crypto ETF could actually be more impressive.
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Ethereum ETF to Have a Bigger Impact Than BTC?
Earlier this month, Kraken’s head of strategy, Thomas Perfumo, told Bloomberg that Ethereum’s ETF was a “rising tide lifts all boats,” situation. He reinforces the importance of the arrival, and what it means for crypto. Now many have wondered if the Ethereum ETF could actually have a bigger impact than its Bitcoin counterpart.
One such person who believes in its potential is Bitwise chief investment officer Matt Hougan. In a recent report, the executive highlighted what the crypto market could expect from the product. Moreover, he discussed how it could be the biggest crypto-based ETF yet.
“The first few weeks could be choppy, as money may flow out of $11 billion Grayscale Ethereum Trust (ETHE) after it converts to an ETP,” Hougan said. “By year-end, I’m confident the new highs will be in,” he added.
Also Read: Bitwise Says SEC is Open to Solana ETF After Ethereum Launch
After discussing the impact that Bitcoin had on the market, Hougan asked if ETh could “see the same sort of impact,” when it arrives. He answered, saying he thinks, “It might be bigger.”
“I think the new Ethereum ETPs will attract billions. And I think the money flowing into these new ETPs will have a bigger impact than it did with Bitcoin,” he stated. Hougan notes that lower short-term inflation rates and ETH staking play a role. It will be interesting to observe, as crypto could be heading toward a monumental bull rally.