Bitwise CIO Predicts Year-End Crypto Rally on SEC Tailwinds as Firm Files for Spot Avalanche ETF
Matt Hougan, Chief Investment Officer at Bitwise, believes the crypto market is on the verge of a significant rally as the US Securities and Exchange Commission (SEC) prepares to introduce generic itemizing requirements for crypto exchange-traded merchandise (ETPs).
Key Takeaways:
- Bitwise CIO Matt Hougan expects a robust year-end crypto rally pushed by macro elements like price cuts.
- He believes the SEC’s proposed generic ETP itemizing requirements may fast-track a number of crypto ETFs.
- Bitwise has filed for a spot Avalanche ETF, aiming to supply institutional buyers regulated publicity to AVAX.
In a note to clients this week, Hougan mentioned these adjustments may “blow the market extensive open” and gas a wave of latest listings, making this “the Super Bowl pre-game present” for crypto.
Bitwise CIO Sees Macro Setup for Strong Crypto Rally Despite September Slump
Hougan identified that whereas September has traditionally been a weak month for digital belongings, a number of macro and structural elements are lining up for a robust year-end rally.
He cited potential rate of interest cuts, rising inflows into crypto funding merchandise, growing concern over greenback power, and rising momentum in stablecoins and tokenization as key drivers.
“Yet as buyers, we’ve largely been caught ready,” he added.
At the middle of his outlook is the SEC’s proposal for generic crypto ETP itemizing requirements. Currently, every new spot crypto product should undergo a prolonged and unsure approval course of.
Hougan mentioned the proposed shift would enable issuers to launch ETPs extra effectively, inside as little as 75 days, if the underlying asset meets pre-defined standards, such as having a regulated futures market.
Assets like Solana, XRP, Avalanche, Dogecoin, Chainlink, and others may shortly qualify, doubtlessly unleashing a flood of latest ETP choices.
This regulatory growth comes as Bitwise has filed for a spot Avalanche ETF, becoming a member of VanEck and Grayscale in a race to supply institutional entry to AVAX.
The fund will monitor the CME CF Avalanche-Dollar Reference Rate and be backed by AVAX tokens held in custody by Coinbase Custody.
Structured as a Delaware statutory belief, the fund goals to offer cost-effective publicity to Avalanche inside a standard funding wrapper.
Hougan Compares Crypto ETP Boom to Post-ETF Rule Surge in 2019
Hougan in contrast the anticipated ETP growth to the surge in conventional ETF issuance that adopted the SEC’s adoption of the “ETF Rule” in 2019.
He famous that such reforms helped ETF launches triple within the U.S., remodeling the market right into a extra accessible and aggressive house.
If crypto follows the identical path, he mentioned, dozens of latest single-asset and index-based ETPs may arrive quickly, bringing with them extra buyers and institutional capital.
However, Hougan cautioned that product launches alone don’t assure inflows. Investors nonetheless want compelling fundamentals.
For occasion, U.S. spot Ethereum ETFs noticed modest demand at first and solely gained traction after curiosity in associated belongings like stablecoins picked up.
Still, ETPs make crypto far simpler to entry, doubtlessly setting the stage for robust rallies as soon as the precise circumstances align.
“The SEC adopting generic itemizing requirements is a ‘coming of age’ second for crypto,” Hougan mentioned. “But it’s additionally just the start.”
Meanwhile, SEC Chair Paul Atkins has mentioned the agency would now issue preliminary notices of technical violations earlier than pursuing formal enforcement actions towards crypto corporations.
The publish Bitwise CIO Predicts Year-End Crypto Rally on SEC Tailwinds as Firm Files for Spot Avalanche ETF appeared first on Cryptonews.
