The Rise of Ethereum: Bitwise CIO Predicts Continued Growth
The chief investment officer of the crypto asset management firm Bitwise, Matt Hougan, is bullish on the future of Ethereum. According to him, the demand for ETH is set to continue rising in the coming months, driving its price higher.
Overwhelming Demand Driving ETH Price Surge
Hougan took to social media platform X to share his insights on the recent surge in Ethereum’s price. He highlighted that ETH has seen a significant uptrend, with a 50% increase in the past month and a staggering 150% rise since its lows in April. The primary reason behind this surge, as per Hougan, is the overwhelming demand from exchange-traded products (ETPs) and corporate treasuries.
Since May, institutional demand for ETH has been on the rise, leading to a substantial increase in its price. Initially, the launch of ETH ETPs in July 2024 received a tepid response. However, a shift occurred in mid-May, resulting in a surge of more than $5 billion in spot Ethereum ETPs. Corporate treasuries have also joined the game, with companies like Bitmine and SharpLink announcing Ethereum treasury strategies.
Predicted Future Growth
Hougan believes that this trend of increased demand for ETH is here to stay. He anticipates that blue-chip investors will continue to ramp up their investments in the top altcoins, further driving the price of Ethereum upwards in the coming months.
Looking ahead, he predicts that ETH will continue to see strong ETP inflows and increased interest from treasury companies. He envisions ETPs and Treasury Companies buying $20 billion worth of ETH in the next year, creating significant demand compared to the expected supply. This imbalance in demand and supply is likely to push the price of ETH even higher.
Current Price and Outlook
At the time of writing, ETH is trading at $3,635, reflecting a 3.2% decrease on the day. Despite this minor dip, the overall outlook for Ethereum remains positive, with Hougan’s predictions pointing towards continued growth in the foreseeable future.
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