Wall Street is gearing up for a new batch of cryptocurrency exchange-traded funds: Ethereum.
An Ethereum spot ETF could be listed as soon as this week, pending approval from the U.S. Securities and Exchange Commission, and Bitwise Asset Management’s Matthew Hougan plans to get involved in the move.
“What you’re seeing is the birth of a new asset class,” the company’s chief investment officer told CNBC.ETF Edge” on Monday.
Hougan’s company is applying for an Ethereum ETF spot.
“If you want to invest in the growth of tokenization, Ethereum is like a pick and shovel,” Hougan said. “It’s the foundation of it all…I think that’s going to appeal to a lot of people.”
He believes cryptocurrency ETFs overall are a multi-year story. Hogan is referring to The first spot Bitcoin ETF Launched in January. He sees their success as a good indicator of the future.
“It (Bitcoin) is entering the mainstream,” he noted. “This is going to be a multi-year story.”
Spot Bitcoin ETFs have attracted about $15 billion since their launch and currently hold two of the largest ETF inflows this year, according to FactSet.
Hougan believes Bitcoin’s recent success is unprecedented and views it as a bullish indicator for spot ether ETFs.
“If we get $5, 10, or $15 billion in revenue in the first two years of these Ethereum ETFs, that’s a huge success,” Hougan said.
