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- Matt Hougan sees ETF approval propelling a long-term price rally for crypto assets.
- Bitcoin remains unaffected by the recent Spot ETF approval as prices tumble.
Bitcoin ETFs are expected to change the entire cryptocurrency market and market players have been fueling this narrative since the previous year. Following the recent approval of 11 Bitcoin Spot ETFs, Matt Hougan, the Chief Investment Officer of Bitwise Asset Management echoed similar sentiments.
Convinced that the ETFs will help to bolster the prices of crypto assets, Hougan has laid down his bullish near-term and long-term expectations. He asserted;
I think the short-term flows are priced in. I think that’s what we’re seeing in the market. The price has been volatile, but it hasn’t moved that much since it became clear these were going to launch. I think it’s fair to think that the immediate flows are likely priced in. I think the market dramatically underestimates the long-term impact by a factor of quite a few.
The Bitwsie executive highlighted the significance of the Spot ETF approval as he referenced the launch of gold ETFs. Having spent 15 years in the ETF industry, he observed the swift rate at which gold surged in market value. After the launch of a gold ETF in 2004, gold saw its market value increase from $2 trillion to a present market value of $15 trillion. Hougan is convinced that the launch of the ETF confirmed significantly gold’s overall market success.
Bulls lose momentum as Bitcoin trades in the red zone
In the long term, billions of dollars will flow into the recently approved ETFs over the years, and the result will be reflected in the price of Bitcoin. In Hougan’s words, the ETF is “going to be tremendously supportive of prices.” It bears mentioning that in the near term, prices might be volatile.
He went on to explain that the vast majority of wealth is currently controlled by financial advisors, who are typically tasked with the role of helping other people and institutions invest. He expands on this even further saying;
That’s 80% of the wealth. So we went from zero to $44,000, essentially capturing only one-fifth of the market. And what ETFs do is they open up the other four-fifths, and that’s substantial, particularly at a time when there’s a relative scarcity of supply of new Bitcoin coming onto the market. That’s why I think people underestimate it.
Back in 2023, a total of 13 companies filed for a Bitcoin Spot Exchange Traded Fund (ETF); this year, the U.S. SEC has approved 11 of these ETF applications.
The price of Bitcoin could also significantly skyrocket with the approval of a Bitcoin Spot ETF, market analysts have reckoned on different occasions. While the asset currently trades at a press time price of $45,983, Bitcoin could record a massive jump in price value in the coming months if the recently approved ETF applications meet market expectations.
