Ethereum Demand Shock Will Rock Markets, Bitwise CIO Warns

There is a sudden increase in the interest of institutions and companies in ETHEREUM (ETH) is the stage for what is called the major investment officials in the Matt Hougan “structural imbalance” between supply and demand – those that can push prices beyond the rise of currencies already encrypted this year.

In a memorandum distributed to customers on July 22, 2025, Hougan indicated that Ether had risen more than 65 percent last month and more than 160 percent since April. He says that this assembly is not operated on its own, but rather by the dramatic incompatibility between the amount of ether produced by the network and the quantities that are now absorbed by the products that were transferred for exchange (ETPS) and the newly formed “wonderful treasury” companies.

The trauma of demand for ethereum is inevitable

“Sometimes it is so simple,” Hagan booksEchoing his long thesis that, in the short term, asset prices are mainly dictated with flows. He parallel to Bitcoin’s explosive performance in the wake of the launch of the United States of America Bitcoin ETPS in January 2024, when “ETPS, companies and governments gained more than 1.5 million Bitcoin, while Bitcoin Blockchain production produced more than 300,000”.

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It is claimed that the same dynamic has finally acquired the Atheer market – only with more strength. Between May 15 and July, Eter Eter ETPS attracted more than $ 5 billion of net flow, while a handful of companies publicly circulated in storing the distinctive symbol as a primary treasury asset. Among the most aggressive buyers:

• The indulgence techniques accumulated in the Bottom image (BMNR) 300,657 ETH – about $ 1.13 billion at current prices – and announced an ambition to “get 5 percent of all ETH supplies”.
• Sharplink Gaming (SBET) bought 280,706 ETH ($ 1.06 billion) and revealed plans to raise an additional $ 6 billion to acquire future.
• Bit Digital (BTBT) liquidated their bitcoin reserves after raising $ 170 million, which revenue to more than 100,000 ETH (about $ 375 million).
• The ETHER (DYNX) has set a preliminary general offer based on about $ 1.6 billion in the ether treasury.

In total, ETPS and public companies bought approximately 2.83 million of the ether – which were evaluated in the north for $ 10 billion – extending for nine weeks. During the same period, ETHEREUM network created only about 88000 ETH in a new version, which is the percentage of demand for the supply that Hougan calculates at 32 to 1. “No wonder the high price of ETH”.

Whether this pressure is now continuing is the main question for investors. Hojan’s answer is unambiguous. It indicates that even after the last purchase spree, the ether is still owned by bitcoin in the ETP market: the ether boxes control in less than 12 percent of the assets that Bitcoin Etps maintains, although the market value of ETH stands in almost one line of BTC. He said: “With all the excitement surrounding Stablecoins and the distinctive symbol – which is mainly built on Ethereum – we believe this will change,” expecting billions of dollars in additional flows “in the next few months.”

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Meanwhile, the economics of the listed “Crypto Treasury” companies appear to be self -dating. BMNR and SBET shares every trade in nearly twice the net value of the ether kept, which stimulates management teams to make shares, raise capital, and buy more ETH. “As long as this remains true, you can bet on the Wall Street companies will turn money into more eth purchases,” Hougan Books.

BitWise projects that can absorb ETPS and Treasury companies up to $ 20 billion of ether – 5.33 million coins at the present time – more than next year. In contrast, the protocol version table is expected to add only about 800,000 ETH to the blood circulation during the same window, which means a balance of 7 to 1.

“This is a higher percentage of what we saw for Bitcoin since the launch of Spot Etps,” said Hagan.
The skeptics often argue that the long -term ETHER supplies are not covered in the way in which the Bitcoin is, and that its evaluation depends on factors that exceed simple scarcity, such as the use of the network and transactions fees. Hougan does not oppose these points but insists that they are secondary in the short term. “In the short term, the price of everything is determined by supply and demand, and now there is a more demand for ETH than the offer,” and saved.

At the time of the press, ETH was traded at $ 3,703.

Distinctive image created with Dall.e, Chart from TradingView.com