'Common sense' to prevail in ether ETF approval: Bitwise CIO

Ethereum (ETH-USD) prices are surging as investors' hopes for the approval of a spot ether ETF rise. Bitwise Asset Management CIO Matt Hougan joins Market Domination to discuss his outlook on ethereum ETF approvals.

Hougan expresses confidence, stating that the odds for a spot ether ETF approval "is up above 80% before the end of the year." While not a guarantee, he notes that "it looks a lot more likely than it did," fueling optimism and driving ethereum's price surge in today's trading session.

When asked about the possibility of a lawsuit for a spot ether approval, Hougan believes "it looks like common sense might prevail." He points out that spot bitcoin ETFs and future ETFs already exist, and since ethereum future ETFs are available, there is a likely chance that a spot ether ETF will materialize.

Addressing concerns about Securities and Exchange Commission approval, Hougan states, "It looks like Washington has gotten the message that crypto is good for America and that it's popular with American voters, and I think that's trickling through into different parts of policy."

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Angel Smith

Video transcript

The number two trending ticker on Yahoo Finance right now, it's one that doesn't always make an appearance, the fresh optimism about the Securities and Exchange commission approving spot, the ETF ahead of the first deadline later this week and joining us now is bit wise asset management, Cio Matt Hogan that it's great to see you, you guys, of course, an application in for Ethereum ETF, you got your spot, Bitcoin ETF approved along with the others earlier this year.

So I I know that you're also encouraged by some other developments in Washington, which we'll get to in a second.

But I do want to ask about this first and what you guys are hearing and how close do you think it might be?

Absolutely, it's great to be here, Julie.

This has been a big change.

You know, I think last week the betting markets on P market had about a 10% odds of seeing a spot e approval and now those odds are up above 80% by the end of the year.

So the market is voting that this is likely we're seeing that as issuers update their 19 B four applications.

It's not a guarantee that we're going to get to approval, but it looks a lot more likely than it did last week.

And you're seeing that reflected in the price and the fact that the ticker is trending there on Yahoo and Matt though, you know, you think about Gary Gensler and how, you know, listen, Matt, he, he didn't want a spot Bitcoin ETF, there was a lawsuit.

I mean, do you think there ultimately is gonna have to be a lawsuit to see a Spot Ethereum product?

You know, I thought that might be the case but it looks like common sense might prevail.

We already have Bitcoin Futures ETF S and we got a spot, Bitcoin ETF, we have Ethereum Futures ETF S and now the market is pricing in the likelihood that we'll get a spot, Ethereum ETF.

And I think the important thing to remember is look at what the Bitcoin ETF accomplished.

It dramatically lowered costs, it made it safer and more regulated to access Bitcoin.

Those are wins for investors.

I thought we might need a lawsuit, but I do think common sense is going to win out here.

And, uh, and I think that would be great if it does.

What changed Matt, I mean, there's been some reporting here that the Security and Exchange Commission has now sent out requests for comments or follow up requests to some of the firms.

Have you guys gotten a follow up request from the SEC and why do you think that they did this all of a sudden?

I mean, it seems, as you said, the, the, what's reflected in the, in the markets pricing this in, it's changed pretty quickly.

Yeah, obviously I can't speak to our specific filing because it's live at the SEC.

But you are seeing issuers update their filing bit wise, certainly plans to be competitive in this market.

I think it's a little bit what you hinted at at the top of the segment which is there has been a real sea change in Washington around crypto.

We saw the first piece of comprehensive crypto or positive crypto legislation passed both houses of Congress with the S A 121 reversal.

We're seeing a coalition, a bipartisan coalition emerging around Stablecoins.

It looks like Washington has gotten the message that crypto is good for America and that it's popular with American voters.

And I think that's trickling through into different parts of policy.

I don't know that that's specifically what's driven this change around Ethereum.

But I think it's hard to look at what's happening in DC and not see a change taking place in multiple areas including in the ETF market.

I'm interested, Matt, you know, you're talking, there are a lot of about what's going on in the nation's capital and, and with this upcoming election, I, I am curious to get your sense of how much you think crypto is gonna be an issue.

You can see Trump of course, really positioning himself as, as a fan to the crypto faithful.

I think it's fair to say GOP broadly has become kind of more friendly uh matt to the asset class.

Do, do you see crypto, in fact, during this election becoming this kind of, you know, ideological dividing dividing line?

Yeah, I I think it's going to be an important factor.

I know that sounds crazy to some people.

How could something as relatively small as crypto influences something so massive as the US election?

But remember that there are very close contests in many congressional races and indeed for the presidency, handfuls of thousands of voters can really swing things.

And there are a lot of people who deeply care about crypto.

I think what you're trying to see is the Democratic Party move more towards the center on crypto, embrace it as part of America's future.

Uh And that's positive.

So I do think it is a major factor.

I think the other major factor is traditional Wall Street now wants to participate in the gold rush.

That is the crypto.

So I think you're seeing some lobbying forces from Wall Street move the political discussion and you're seeing the growing political influence of crypto shape the nation's politics a little bit in those close markets.

I think it's a game changer for the crypto industry.

I think it's going to push us to do all time highs, Matt real quickly.

Who's better for the crypto industry, Biden or Trump.

Look, I think crypto can thrive in any environment.

I think the worst possible outcome for crypto would be a democratic sweep of both houses of Congress and the presidency.

But absent that a mixed market either way, I think uh it's, it's a good, gonna be a good four years for crypto.

All right, Matt.

Always great to have you on the show.

Thanks for joining today.

Thanks for having me.