Bitwise specialist predicts equal likelihood of Ethereum ETF approval, sets sights on Bitcoin reaching $88k peak in 2024
Bitwise researcher Ryan Rasmussen has expressed a balanced view on the potential approval of Ethereum Exchange-Traded Funds (ETFs), giving both outcomes a 50% probability. In an interview with Yahoo Finance, Rasmussen highlighted the uncertainty surrounding the market’s readiness for such a development, taking into account the preferences of the Securities and Exchange Commission (SEC). He suggested that there is an equal chance of approval or rejection for spot Ethereum ETFs in the future.
This viewpoint is shared by Matt Hougan, Bitwise’s Global Head of Research, who also estimates a nearly 50% chance of approval in May. However, predictions on the Polymarket website are slightly less optimistic, showing a 44% likelihood of approval.
The SEC is expected to make a decision on VanEck’s spot Ethereum ETF application by May 23, and will likely make simultaneous decisions on other similar applications. This approach follows the SEC’s handling of spot Bitcoin ETF applications in the past.
Rasmussen pointed out the SEC’s previous rejections of Bitcoin ETFs until Grayscale took legal action to challenge the dismissal of its application. It remains uncertain whether a lawsuit will be necessary for the approval of Ethereum ETFs, or if any applicant will initiate legal action at this stage.
Although Bitwise does not have a pending application for a spot Ethereum ETF, it obtained approval for a spot Bitcoin ETF on January 10. Rasmussen expressed satisfaction with the performance of Bitcoin ETFs, particularly noting that Bitwise’s Bitcoin ETF (BITB) attracted $1 billion in assets, contributing to a total inflow of over $15 billion into the ETFs.
He also speculated on the impact of spot Bitcoin ETFs and similar funds on cryptocurrency prices, attributing recent price increases to the entry of institutional investors who were previously on the sidelines. Rasmussen believes that the introduction of additional ETFs could have similar effects on Ethereum and other cryptocurrencies.
Furthermore, Rasmussen discussed various factors influencing the cryptocurrency market, including Bitcoin’s upcoming halving, Ethereum’s Dencun upgrade, fluctuations in NFT trading volumes, and Solana’s price growth. He suggested that the cryptocurrency sector is transitioning from a challenging 2022 into a multi-year bull cycle.
In conclusion, Rasmussen reiterated Bitwise’s price predictions, stating that Bitcoin is poised to reach a new all-time high of at least $88,000 by the end of 2024. This indicates a strong outlook for the cryptocurrency market amidst evolving regulatory and investment landscapes.
