Corporate treasuries accelerate Ethereum adoption
Ethereum is experiencing a historic demand shock, driven by a flood of institutional interest through ETFs and corporate treasury strategies.
According to Bitwise CIO Matt Hougan, over 2.83 million ETH, valued at more than $10 billion, have been accumulated since May 15—32 times greater than Ethereum’s net issuance during the same period, reports BeInCrypto.
This aggressive buying marks a sharp shift from the early ETF adoption phase in 2024, when supply and demand remained relatively balanced. Now, corporate entities like SharpLink Gaming and BitMine are adding ETH to their balance sheets, further tightening supply. The impact resembles Bitcoin’s previous run, where ETF and corporate buyers drove exponential price growth.
Ethereum still undervalued compared to Bitcoin
Despite the surge in institutional interest, Ethereum still lags behind Bitcoin in both market cap and ETF holdings. As of now, Ethereum’s market cap of $449.8 billion is just 19% of Bitcoin’s $2.3 trillion, while ETH ETFs hold under 12% of the assets managed by BTC ETFs. Hougan believes this gap suggests Ethereum remains undervalued, with a long runway for future ETF inflows. With stablecoins and tokenization trends accelerating, Bitwise expects strong, sustained interest in Ethereum for the rest of 2025 and beyond. Recent inflow data supports this, with U.S. Ethereum ETFs drawing $1.17 billion in June and already $507.4 million in July, including a $211 million daily record.
ETH faces potential 7:1 demand-supply imbalance
Looking forward, Bitwise projects that ETPs and treasury firms could purchase $20 billion worth of ETH over the next year—equivalent to about 5.33 million ETH. By contrast, Ethereum’s expected net issuance is just 800,000 tokens, creating a potential 7:1 demand-to-supply imbalance. Hougan emphasized that short-term price action is dictated by supply and demand dynamics—and right now, demand is clearly in control. If this trend continues, Ethereum could break past its current $3,716 level and retest the $4,000 psychological mark last seen in December 2024. As more institutions seek ETH exposure and ETF allocations rise, Hougan predicts Ethereum will dominate the second half of 2025, setting the stage for continued upward momentum.
Recently we wrote that Bitwise 10 Crypto Index Fund faces unexpected regulatory holdup.
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