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- The Bitcoin ETF boom is an “IPO moment” for cryptocurrencies, said Matt Hogan, CIO at Bitwise.
- “We’re in a new era of price discovery, and I think prices could go up significantly from here.”
- Buyers include individual investors, independent advisors and hedge funds, with demand likely to increase in the future.
Bitwise CIO Matt Hogan says the recent rally toward all-time highs could be a turning point for the cryptocurrency, with the cryptocurrency up 40% since early 2024 on the back of the Spot Bitcoin ETF rally. He states:
“This was Bitcoin’s IPO moment,” Hogan said on CNBC. “We’re in a new era of price discovery, and I think prices could go up significantly from here.”
Bitwise has its own Bitcoin ETF, which was one of more than a dozen approved by the Securities and Exchange Commission in early January.
Bitcoin was trading around $63,000 on Thursday, close to its all-time high of $69,000. Technical analyst Katie Stockton said on Monday that the currency still has room to rise by 22%.
The Spot Bitcoin ETF, which allows investors to gain exposure to Bitcoin without owning it, has attracted strong interest since its introduction and has seen a surge in inflows since Bitcoin’s latest rally began this month. are doing. BlackRock’s ETFs attracted $520 million in a single day this week, marking the second-largest inflow into a U.S. ETF ever.
“I think we’re going to see a bigger wave in the coming months as the conduits start to light up,” Hogan said.
Hogan said the biggest buyers are individual investors, but independent advisors and hedge funds are also showing strong interest.
“The relationship between supply and demand is really at stake,” he added.
While 30,000 tokens were purchased through the ETF this week, Bitcoin miners produced less than 3,000, Hogan said. This mismatch between supply and demand could drive the price of Bitcoin up to $200,000. The halving event scheduled for April 2024 will also drive shortages.
The popularity of Bitcoin ETFs has spread to other crypto assets as well. Excitement over the potential of the Ether ETF has pushed the token’s gains even more than Bitcoin’s so far this year.
“I think there’s a good chance we’ll meet.” [an ether ETF approval] by the end of this year,” Hogan said.
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