Ethereum Could Rise Further on Demand for ETPs and Treasuries, Says Bitwise CIO

• Ethereum ETPs Raise Over $5 Billion
• Institutional demand for ETH exceeds new supply
• Corporate treasuries embrace Ethereum as a reserve

Ethereum (ETH) has attracted strong interest from institutional investors and companies, according to Matt Hougan, chief investment officer at asset manager Bitwise. He believes growing demand for ETPs and the adoption of ETH as part of treasury strategies are the main drivers of the asset's appreciation in the coming months.

After a start to the year marked by declines, ETH has gained over 50% in the last month and over 150% since its April lows. According to Hougan, this recovery is directly linked to the rise of ETPs and corporate involvement in the market.

Spot Ethereum ETPs launched in July 2024, but only began gaining traction in May of this year. Since then, these products have raised over $5 billion. Companies like Bitmine and SharpLink have also announced ETH investments as part of their corporate reserves.

According to estimates released by Hougan, between May 15th and the present, ETPs and corporate treasuries have acquired approximately 2,83 million ETH—equivalent to over $10 billion at current prices. This represents 32 times the net new supply of ETH over the same period.

This trend is expected to intensify in the coming months. "With growing interest in stablecoins and tokenization, we anticipate strong inflows into ETH ETPs for an extended period," Hougan wrote on X Network. He also believes the "ETH treasury company" model is likely to gain traction.

Bitwise's projection suggests that ETPs and companies could buy up to $20 billion worth of ETH over the next 12 months—equivalent to approximately 5,33 million units of the currency. Meanwhile, the network's expected issuance is only 0,80 million ETH, indicating significant buying pressure.

At the time of publication, Ethereum is trading at $3.727,73, down 2,2% in the last 24 hours.