According to Matt Hougan, Bitwise Chief Investment Officer, Ethereum, which has surged by investors for ETH demand by nearly 14% in the past week, is likely to “become high in the coming months.”
Exchange items based on Ethereum and the treasury company could potentially buy $20 billion in assets over the next year, but the Ethereum network will probably produce 800,000 ETH over the same period, Hougan writes.
“This is seven times more demand than new supply. It’s even higher than Bitcoin’s ratio since Spot ETPS launched in 2024,” Hougan wrote in a recent memo. “You can claim it ETH It’s different from BTCits prices are not set purely by supply and demand and do not share long-term issuances of the BTC cap. It’s true in an absolute sense, but for now it doesn’t matter. ”
“In the short term, the price of all It is set by supply and demand, and currently there is more demand for ETH than supply. As a result, I think we are heading higher,” he wrote.
Hougan debuted at a warm reception a year ago, largely due to the impact of Ethereum’s recent profits, but its momentum has been accelerating since mid-May, with the rapid expansion of ETH Treasury.
“The Spot Ethereum ETP is in tears,” wrote Hougan. “Companies are also taking part in the game, with several companies announcing the creation of new Ethereum financial strategies.”
The nine-spot Ethereum Fund has generated $5 billion in net investment since May 15th. This is twice the total for the first 10 months, based on data from investment manager Farside investors in the UK. ETFs have received over $2.5 billion inflows over the past five days.
“Until May 15th, 2025, 10 months after their launch, Ethereum ETPS purchased just 660k of ETH, and there was a $2.5 billion influx,” writes Hougan. “On the other hand, this was the case with purchases made by public companies. de minimis. And in the same time frame, Ethereum Network generated a new ETH of 543k. Basically, it’s cleaning. ”
The emergence of Ethereum Treasuries highlights the growing belief in the potential of Ethereum, following the passage of genius acts that are likely to benefit the network, particularly the case.
Bitmine Immersion (BMNR) has now held ETH worth $1.13 billion, as it focused on Bitcoin mining within a month. Marketing affiliate Sharplink Gaming (SBET) has now surpassed $1 billion in recent purchases and BIT Digital (BTBT), which has also shifted from mining.
The transformation of Bitmine Immersion has attracted the attention of the acclaimed Bitmine Immersion Cathie Wood’s Ark Invest. The investment management company recently added $182 million worth of BNMR shares to its ARK Innovation ETF, ARK Next Generation Internet ETF, and ARK Fintech Innovation ETF funds.
Despite the similar ETH bullishness between Hougan’s rosy forecast and other market observers, the asset’s price lost its lightness as it traded at around $3,600 on Wednesday, falling almost 2%.
“Ethereum is struggling to maintain its upward momentum despite a massive influx,” Valentin Fournier, lead research analyst at BRN, wrote in a shared Wednesday memo. Decrypt it”Emphasises the growing disconnect between institutional demand and short-term price transfers. ”
He added that robust interest in ETFs and institutional adoption supports long-term bull cases, but there are indications that the market is taking its breath.
“The growing demand and price behavior suggests that short-term dips are increasingly likely, even if the year-end outlook remains bullish. We maintain a careful positioning with key cache buffers to take advantage of better entries,” Fournier writes.
