- Bitwise CIO says ETH faces a strong demand shock
- 2.83M ETH bought by ETFs and treasuries since May
- Supply grew 32x less than demand over the same period
Ethereum may be heading for a major price surge, according to Matt Hougan, Chief Investment Officer at Bitwise. Hougan highlights a powerful demand shock in play: since mid-May, ETFs and treasury companies have acquired more than 2.83 million ETH, valued at over $10 billion.
This institutional buying spree vastly outpaces the growth in Ethereum’s supply — by 32 times. In a market driven by supply and demand, this kind of imbalance often leads to significant price movement. Hougan believes this could be a turning point for ETH.
Institutional Buying Signals Confidence in Ethereum
The approval of Ethereum ETFs has unlocked new sources of capital, allowing traditional investors to gain exposure to ETH. Treasury firms and institutions are treating Ethereum not just as a cryptocurrency, but as a foundational asset for the future of decentralized applications and finance.
Hougan’s view reflects growing confidence in Ethereum’s long-term role in the blockchain economy. With its strong fundamentals, including smart contract capabilities and an expanding DeFi ecosystem, ETH is increasingly seen as a core holding.
Supply Can’t Keep Pace with Soaring Demand
Ethereum’s supply has been slowing due to its shift to proof-of-stake and its built-in burn mechanism. When compared to the 2.83 million ETH bought by institutions, the supply increase during this period appears negligible.
With demand exceeding supply by 32x, market conditions are set for a possible price breakout. As more ETFs gain traction and large players continue their accumulation, this demand shock could have lasting effects on ETH’s market value.
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