Hincapie is on-loan from Bayer Leverkusen, with his deal including a permanent option.
And Arteta has hinted he's already seen enough to recommend the defender's outright transfer.
"I fully agree," Arteta replied when it was suggested Hincapie's game has gone up a level this season. "Again, having more time with the team. A sequence of games where probably physically he's in a much better place.
"He's been extremely dominant in all the defensive actions. He understands what we want in the attacking part as well much better. All the set-pieces, all the aspects that are relative to the game model that we have.
"He's very much liked amongst the players. You can see that, the way they interact and react with him. So I'm very pleased that he's showing that up."
On whether the Gunners will trigger their £45m clause, Arteta said: "We will see. Let's go through the season. We have already discussed the possible outcomes that we have after that period. But so far, we are very, very happy with it."