Wall Street is bracing for a new set of cryptocurrency exchange-traded funds: Ethereum.
Pending approval from the U.S. Securities and Exchange Commission, a spot Ethereum ETF could hit the market as early as this week, and Bitwise Asset Management’s Matthew Hogan plans to get in on the action.
“This is kind of the birth of a new asset class,” the firm’s chief investment officer said Monday on CNBC’s “ETF Edge.”
Hogan’s company is filing for a spot Ethereum ETF.
“If you want to invest in the growth of tokenization, Ethereum is like a pick and shovel game,” Hogan said. “That’s what it’s all about. … I think it’s going to interest a lot of people.”
Hogan believes crypto ETFs as a whole are a multi-year story. He is referring to the first spot Bitcoin ETF, which launched in January. He thinks its success will be a good indicator of the future.
“the [bitcoin] “It’s going to become mainstream,” he noted. “It’s going to be a years-long conversation.”
The Spot Bitcoin ETF has attracted roughly $15 billion since its inception and is currently the second-highest ETF inflow this year, according to FactSet.
Hogan believes Bitcoin’s recent success is unprecedented and should be a bullish indicator for a spot Ethereum ETF.
“If these Ethereum ETFs can get $5 billion, $10 billion or $15 billion in the first two years, that would be a huge success,” Hogan said.
