Ethereum Demand Shock Will Rock Markets, Bitwise CIO Warns
Institutional and corporate interest in Ethereum (ETH) is increasing, creating a significant supply-demand imbalance that could drive prices higher. Ether's price rose over 65% in July 2025 and over 160% since April, attributed to a mismatch between Ether production and absorption by exchange-traded products (ETPs) and corporate treasuries. Between May and July, ETPs attracted over $5 billion in net inflows, with public companies purchasing approximately 2.83 million Ether, valued at over $10 billion, while only about 88,000 ETH were produced. This results in a demand-to-supply ratio of 32 to 1. Ether remains under-owned compared to Bitcoin in the ETP market, suggesting potential for further inflows. Bitwise projects that ETPs and treasury firms could absorb up to $20 billion worth of Ether over the next year, while only 800,000 ETH will be added to circulation, indicating a 7-to-1 imbalance. Despite concerns about Ether's uncapped supply, the current demand exceeds supply significantly. ETH was trading at $3,703 at press time.
