Bitwise Asset Management’s Chief Investment Officer, Matt Hougan, has expressed a positive outlook for Ethereum (ETH) in a recent interview with Scott Melker. Hougan highlighted two key factors that could drive the appreciation of the second-largest cryptocurrency by market capitalization in the medium term.
One of the factors is the imminent approval of Ethereum exchange-traded funds (ETFs), which Hougan believes could attract approximately $15 billion in investments over the next 18 months. While acknowledging that the forecast is not set in stone, Hougan remains confident in the potential of this figure.
In addition to the positive expectation with ETFs, Hougan emphasized two other tailwinds that could contribute to the increase in ETH’s value. The first is the growing acceptance of cryptocurrencies by the United States government, which has shown signs of softening its stance. This change in tone from Washington is seen as a positive development for ETH.
The second factor is the recent upgrade of the Ethereum network, known as Dencun. This upgrade focuses on reducing layer 2 transaction costs and improving data availability. Hougan believes that the market has not fully recognized the potential positive impact of this update on ETH.
Hougan’s optimistic outlook aligns with the general sense of positivity surrounding Ethereum. Regulatory clarity and recent technological advancements that promise improved efficiency and scalability have contributed to this growing optimism.
It is important to note that the views expressed by the author and those mentioned in the article are for informational purposes only and should not be considered as financial or investment advice. Investing or trading cryptocurrencies carries inherent risks of financial loss.
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