Bitwise Chief Investment Officer: Compared with BTC, the spot Ethereum ETF will have a greater impact on ETH prices

2024/07/18 11:48

Odaily News Matt Hougan, chief investment officer of Bitwise, said that the US spot Ethereum ETF may have a rough start after its listing, but the impact on the price of the asset may be greater than the impact of the spot Bitcoin ETF on BTC. The spot Ethereum ETF will have a greater impact on the price of ETH for three main reasons: Ethereum has many use cases, resulting in Ethereums inflation rate being actually close to zero, because the number of new ETH generated each day is negligible relative to the amount of activity on the Ethereum network; Bitcoin mining requires expensive computer chips and a lot of energy, which is costly, and miners are forced to sell Bitcoin to maintain operations, while staking ETH has no significant direct costs; About a third of Ethereum (28%) is staked and locked for a period of time, which means that they have actually withdrawn from market circulation. (Cointelegraph)

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