The recent surge in demand for Ethereum highlights a significant shift in the stance of institutional investors. Since early May 2025, 2.83 million ETH has been acquired.
Ethereum Price Dynamics
Throughout the first four months of 2025, Ethereum experienced a downward trend. However, from mid-May, the asset saw a dramatic recovery, increasing over 50% in the past month and over 150% since April 2025. According to Bitwise CIO Matt Hougan, this growth is driven by demand rather than network upgrades or speculative rallies.
Increasing Institutional Demand
Since May 15, 2025, institutional investors have sharply increased their purchases. In two months, inflows into Ethereum ETP exceeded $5 billion. Hougan states that ETPs and corporate treasuries have purchased 2.83 million ETH, leading to a 32:1 demand-supply ratio. This significantly surpasses Ethereum's issuance during the same period.
Prospects for ETH ETPs and Treasury Companies
Despite the recent growth, Hougan emphasized that Ethereum remains underrepresented in institutional portfolios. It is expected that over the next year, ETPs and corporate treasuries could acquire ETH worth $20 billion, equivalent to 5.33 million ETH, while the expected issuance is only 800,000 ETH, creating a projected supply-demand imbalance.
The increase in institutional demand combined with limited ETH issuance creates significant upward pressure on prices. This trend may continue in the future, given the growing interest in tokenization and stablecoins.
