Bitwise, a big name in the investment world, thinks that the price of Ether (ETH) – the second biggest cryptocurrency, is going to go way up, crossing $5,000. This is expected to happen with the introduction of something called spot Ether exchange-traded funds (ETFs) in the United States. An ETF is a type of investment fund and exchange-traded product, with shares that are tradeable on a stock exchange. The launch of these ETFs is planned for next week, but Bitwise says the increase in price might not happen right away because of some bumps in the market.

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• Bitwise predicts that the soon-to-launch spot Ether (ETH) Exchange-Traded Funds (ETFs) in the U.S. could push ETH prices above $5,000.
• Despite possible early fluctuations due to the Grayscale Ethereum Trust’s ETF conversion, Bitwise’s Chief Investment Officer, Matt Hougan, expects a significant rise in ETH prices by the end of the year.
• Bitwise forecasts that Ether spot ETFs will surpass Bitcoin’s performance, with an impressive $15 billion in net inflows within the first 18 months of trading.

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US Spot Ether ETFs Launch Predicted to Propel ETH Prices Above $5,000

Matt Hougan, who is the Chief Investment Officer of Bitwise, talked about this in a report that came out on Tuesday. He said that at first, there might be some ups and downs in the market because $11 billion is expected to move from something called the Grayscale Ethereum Trust as it changes into an ETF. But even with these early bumps, Matt believes that by the end of the year, the price of ETH will have gone up a lot. He said, “even if people aren’t expecting the strength of the flows, the price of ETH could go much higher.”

Bitwise’s report also talked about how the value of Bitcoin (BTC) – the biggest cryptocurrency, went up by 25% after spot ETFs were launched in the US earlier this year. In fact, since October of last year, when people started thinking that these spot ETFs might be introduced, BTC’s price has gone up by more than 110%.

Bitwise also thinks that the launch of these new spot ETFs for Ether will have even more of an effect than it did for Bitcoin. This is because of three main reasons: Ether doesn’t have any short-term inflation, the people who have Ether (called stakeholders) don’t have to sell it like Bitcoin miners do, and 28% of all Ether is already staked (which means it’s set aside and not being used).

People in the cryptocurrency world are really expecting these new Ether spot ETFs to do well. Bitwise is predicting that they will bring in $15 billion in the first 18 months of trading. Last month, a group called Steno Research also said they think Ether’s prices will reach at least $6,500 this year because of these new spot ETFs and other things happening in the market.

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