Ethereum has been in tears recently and is back after months of slow performances. The rally turned the industry chatter over from “ETH Surge?” “How long will this rally last?” And Bitwise CIO Matt Hougan is considering what the future holds.
summary
- ETH has grown by more than 50% in the past month, bringing greater demand from the products traded on exchanges and from the Ministry of Corporate Treasury.
- Corporate giants like Sharplink and Bitmine are leading a new wave of Ethereum accumulation.
- Analysts look forward to billions of fresh acquisitions over the next year.
In the X-thread on July 22nd, Hougan unraveled why Ethereum (ETH) prices are rising and why he believes the momentum will last for several months. The CIO’s debate is a simple but powerful driver, in overwhelming demand from the exchange products (ETPs) and the corporate finance ministry.
The Ethereum Demand Shock
A thread on why ETH's price is rising and why it will continue to rise in the months ahead.
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— Matt Hougan (@Matt_Hougan) July 22, 2025
From slow inflows to “demand shock”
Hougan calmed the organization’s interest with Ethereum’s weak performance at the beginning of the year. For a long time, the Ethereum Exchange-Traded product struggled to gain real momentum, only borrowing billions of dollars and earning just 660,000 ETH.
During that same period, the network issued approximately 543,000 ETH. With the balance between supply and demand being almost balanced, there was little reason for the price of assets to rise.
However, this trend has changed since. Spot Ethereum ETPS had surged in purchasing activities around mid-May, attracting more than $5 billion within weeks. At about the same time, a new class of buyers were in the picture.
Sharplink, Bitmine Fuel Corporate ETH Grab
The wave of corporate ETH buyers has been shaking the scene in recent months. Among them, Igaming’s giant Sharplink and mining company Bitmine stood out, trapping him in the race to build a Treasury Department focused on the biggest es.
Their aggressive buying fumble has already pushed both companies beyond the holdings of the Ethereum Foundation as crypto.news previously reported, as 360,807 ETH and Bitmine approach 360,807 ETH and BITMINE at around 300,000 ETH.
read more: Sharplink bends Treasury muscles with a massive ETH purchase and beats rival Bitmine
Bitiwise estimates that ETPS and corporate finance ministry have absorbed 2.83 million ETH since May, and is worth more than $10 billion. This is about 32 times the net supply issued by the network during that period, and according to the CIO, this imbalance in demand for supply is the main force behind 50% of ETH gatherings over the past month. But this isn’t even a peak.
Eth to the moon? The institution is not completed yet
Ethereum’s market capitalization is almost 19% of Bitcoin’s market capitalization, but ETH ETP holds less than 12% of its managed assets compared to Bitcoin products. If investors are seeking equality, this underweight position leaves room for a significant inflow.
Hougan added that Ethereum-centric finance companies are likely to double their accumulation as their strategy will pay off along with stock market profits that show strong investors’ approval and will encourage more purchases.
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ETPS and the Corporate Treasury are planning to purchase around 5.3 million ETH and around $20 billion next year. The network is expected to generate only around 8 million ETH at the time, so this demand could be nearly seven times higher than the new supply.
While Ethereum’s issuance model differs from Bitcoin’s cap supply, Hougan emphasized that short-term prices are determined by simple supply and demand dynamics. Currently, demand is far outweighing new issuances, and if the trend continues, ETH is positioned for more profits.
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