March 27, 2024
Latest Cryptocurrency News

Bitwise CIO Advocates Delay for Ethereum ETF Launch

Matt Hougan, Chief Investment Officer at Bitwise Asset Management, expressed reservations about the anticipated launch of an Ethereum exchange-traded fund (ETF) in May. Speaking at the Digital Asset Conference in London, Hougan diverged from the prevailing optimism, stating:

“I’ll take a maybe controversial view: I hope we don’t get an Ethereum ETF in May. I actually sort of want it to be later.”

Tempered Expectations Amidst Stagnation

Initially, there was fervent anticipation surrounding the upcoming SEC decision on the first pending spot Ether ETF applications, slated for May. However, recent evaluations indicate a more cautious outlook due to perceived stagnation in progress. Hougan suggested a delay, proposing that launching spot Ether ETFs in December might be more prudent and advantageous.

Hougan’s rationale stems from the belief that granting Wall Street and traditional finance more time to comprehend the intricacies of cryptocurrency, particularly Bitcoin, would likely result in a more receptive market for Ethereum (ETH) and its ETF.

Patience for Market Digestion

According to Hougan, Wall Street and traditional finance are still in the nascent stages of understanding Bitcoin (BTC) and its implications. He emphasized the necessity of allowing sufficient time for these entities to assimilate Bitcoin before introducing another ETF.

“Wall Street and traditional finance just started ingesting this giant thing called Bitcoin, and they’re just getting their hands around it…and I think you need to give them longer to digest.”

Matt Hougan, CIO of Bitwise

Hougan estimated that a period of approximately eight to nine months would be requisite for Wall Street to adequately acclimate to Bitcoin (BTC) before seriously considering the introduction of another ETF. This cautious approach reflects a nuanced understanding of the complexities involved in the mainstream adoption of cryptocurrencies within traditional financial frameworks.

Image by Peter Patel from Pixabay

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