Bitwise predicts 50% odds of spot ETH ETF approval, $88k BTC by year end

Bitwise researcher Ryan Rasmussen believes there’s a 50% likelihood that spot Ethereum ETFs will acquire approval within the coming months.

Rasmussen shared his insights on the chances throughout a Feb. 26 interview with Yahoo Finance. He mentioned:

“I actually don’t know if the market is essentially at some extent that the SEC wish to see in an effort to approve these spot [Ethereum] ETFs this Could. I believe it’s a couple of 50/50 p.c likelihood that we’ll see approval or we’ll see rejection and kick it out to a different … spherical of functions sooner or later.”

Different sources, together with Bitwise World Head of Analysis Matt Hougan, beforehand predicted near 50% odds that spot ETH ETFs will acquire approval in Could. In the meantime, the chances for approval are barely decrease on the Polymarket web site at 41%.

The SEC has to determine on VanEck’s spot Ethereum ETF utility by the Could 23 deadline and is predicted to determine on the opposite functions concurrently because it did with the spot Bitcoin ETFs.

Rasmussen additionally mentioned that the US SEC didn’t approve Bitcoin ETFs till Grayscale initiated a lawsuit regarding dismissing its utility. He added that it’s unsure whether or not the same lawsuit may be needed for ETH ETFs.

Moreover, it’s unclear whether or not any applicant may file a lawsuit at this stage of the method.

Bitwise believes ETFs will drive costs upward

Bitwise doesn’t presently have a pending spot Ethereum ETF utility however was one in every of a number of candidates that gained approval for a spot Bitcoin ETF in January.

Rasmussen famous that Bitwise is “tremendously completely happy” with the success of Bitcoin ETFs. He mentioned that the agency has seen $1 billion in belongings movement into its personal Bitwise Bitcoin ETF (BITB) and that the ETFs have collectively seen greater than $15 billion in asset movement.

Rasmussen additionally predicted that spot Bitcoin ETFs and different funds will drive up crypto costs as beforehand “sidelined” institutional traders purchase in. He mentioned:

“When we have now that form of demand shock coming into the market, I believe it’s no shock that we’ve seen the value of Bitcoin rise … I believe will probably be the identical for Ethereum or different belongings if there have been different ETFs to return to markets.”

Rasmussen additionally described different occasions impacting the crypto market, together with Bitcoin’s upcoming halving, Ethereum’s upcoming Dencun improve, NFT buying and selling volumes, and Solana’s worth progress.

He instructed that crypto is “rising from the ashes” of the weak 2022 market and is coming into a multi-year bull cycle. Rasmussen concluded by restating Bitwise’s earlier worth predictions and mentioned that the flagship crypto continues to be on monitor to succeed in a brand new all-time excessive of no less than $88,000 by the top of 2024.