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Bitwise forecasts a historic surge in Ethereum prices driven by unprecedented institutional demand, with Ethereum ETFs and corporate treasury strategies playing pivotal roles.
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Despite Ethereum’s market cap trailing Bitcoin’s significantly, institutional inflows are expected to reach $20 billion within the next year, potentially creating a strong demand-supply imbalance.
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COINOTAG highlights that over 2.8 million ETH have been acquired by institutional investors in the past month alone, coinciding with a 50% price rally, signaling robust market confidence.
Ethereum’s price is poised for historic growth as institutional demand surges, with ETFs and corporate treasuries driving inflows potentially exceeding $20 billion in 2025.
Ethereum’s Institutional Demand Sparks Historic Price Momentum
Ethereum has witnessed a remarkable uptick in institutional interest, catalyzing a significant price rally. Exchange-traded products (ETPs) and corporate treasury acquisitions have rapidly absorbed available Ethereum supply, reversing earlier market stagnation. Over the past month, Ethereum’s price has surged by more than 50%, reflecting a strong accumulation phase led by institutional investors.
Bitwise CIO Matt Hougan emphasizes that this surge is fueled by institutional buying that far exceeds Ethereum’s net issuance. Since mid-May, spot Ethereum ETPs have attracted over $5 billion, with combined purchases by ETPs and corporate treasuries totaling approximately 2.83 million ETH, valued at over $10 billion at current prices. This volume represents a demand nearly 32 times greater than new supply during the same period, indicating a profound shift in market dynamics.
Previously, Ethereum ETFs launched in July 2024 had a modest impact, with inflows around $2.5 billion through mid-May 2025, maintaining a balanced supply-demand environment. However, recent weeks have seen a dramatic acceleration in institutional inflows, exemplified by corporate treasury strategies from firms like BitMine and SharpLink Gaming. This mirrors Bitcoin’s institutional accumulation trend, where corporate buyers and ETFs acquired more than 100% of new Bitcoin issuance over the past 18 months.
Hougan notes, “ETP investors remain significantly underweight Ethereum compared to Bitcoin,” suggesting substantial room for continued inflows and price appreciation.
Ethereum’s Market Cap Undervalued Relative to Bitcoin Amidst Growing Institutional Interest
Ethereum’s current market capitalization stands at approximately $449.8 billion, less than 19% of Bitcoin’s $2.3 trillion valuation. Correspondingly, Ethereum ETFs manage just under 12% of the assets held by Bitcoin ETFs. This disparity underscores Ethereum’s relative undervaluation in the institutional investment landscape.
With the expanding use cases of stablecoins and tokenization on the Ethereum blockchain, Bitwise anticipates sustained strong inflows into ETH ETFs. Supporting this outlook, a recent COINOTAG report highlighted record ETF inflows, with $564.2 million in May, $1.17 billion in June, and $507.4 million in July to date. Crypto analyst Mads Eberhardt remarked that a single day’s inflow of $211.3 million marked one of the highest on record for Ethereum ETFs.
Corporate adoption is also accelerating, as treasury strategies gain traction among publicly traded companies holding ETH. Hougan asserts that this trend will continue as long as these companies trade at premiums relative to their asset holdings, reinforcing bullish fundamentals for Ethereum.
Reflecting on these developments, Hougan projects that Ethereum ETFs could dominate the second half of 2025, with inflows potentially reaching $10 billion in that period alone.
Projected Demand-Supply Imbalance Sets Stage for Price Upside
Bitwise’s projections suggest that institutional investors and treasury firms may acquire up to $20 billion worth of Ethereum over the next 12 months, translating to roughly 5.33 million ETH tokens. In contrast, Ethereum’s anticipated net issuance is approximately 800,000 ETH tokens, creating a potential demand-to-supply ratio of nearly 7:1.
Hougan summarizes, “In the short term, the price of everything is set by supply and demand… And for the time being, there is significantly more demand for ETH than there is new supply.” This imbalance could underpin sustained price appreciation and heightened market activity.
Ethereum (ETH) Price Performance. Source: COINOTAG
As of the latest trading session, Ethereum was priced at $3,716, marking a modest 0.82% increase over the previous 24 hours, reflecting steady momentum amid growing institutional participation.
Conclusion
Ethereum is entering a pivotal phase characterized by historic institutional demand and strategic corporate treasury adoption. With inflows expected to outpace supply significantly, Ethereum’s price trajectory appears poised for robust growth. Investors should monitor ETF inflows and corporate treasury announcements closely, as these factors will likely shape Ethereum’s market dynamics throughout 2025. The evolving landscape suggests a compelling opportunity for stakeholders seeking exposure to Ethereum’s expanding ecosystem and institutional validation.
