Ethereum News Today: Ethereum Could See $20B Inflows as Institutional Demand Drives 65% Surge

Bitwise Asset Management’s Chief Investment Officer, Matt Hougan, has forecasted a significant surge in Ethereum’s price driven by institutional investment flows, with the firm projecting up to $20 billion in inflows over the next 18 months [1]. This prediction aligns with Ethereum’s recent performance, as the cryptocurrency has surged over 65% in the past month, reflecting heightened institutional demand and strategic accumulation [2]. Bitwise attributes this trend to the growing adoption of Ethereum by institutional players, including its use as a treasury asset and the proliferation of Ethereum-based ETFs, which are reshaping the crypto market’s dynamics [3].

The firm’s analysis highlights a structural shift in Ethereum’s demand, with on-chain data revealing increased activity in wallets holding 10,000–100,000 ETH. These large holders, often institutional investors, have shown sustained buying pressure, indicating a strategic repositioning in the market [4]. Bitwise notes that Ethereum’s demand has outpaced its supply by 32 times—a metric it links to the asset’s utility in decentralized finance (DeFi) and governance frameworks, which are attracting long-term capital [5].

This institutional momentum mirrors Bitcoin’s post-ETF surge, as seen in the broader crypto market’s evolution. Hougan argues that Ethereum could benefit from similar dynamics, particularly as regulatory clarity in key jurisdictions reduces barriers to entry for traditional investors [6]. The firm’s investor note emphasizes that Ethereum’s transition to proof-of-stake and its role as a leading smart contract platform have created a technical foundation for sustained appreciation, supported by macroeconomic tailwinds such as reduced volatility and improved risk management tools [7].

Bitwise’s projections extend beyond Ethereum’s immediate price action. The firm anticipates that institutional adoption is no longer cyclical but a sustained force, contrasting with historical four-year crypto cycles that have become obsolete [8]. This view is reinforced by Ethereum’s expanding role in enterprise applications and its integration into institutional portfolios, which are accelerating capital inflows [9]. While the firm’s focus remains on Ethereum, its analysis indirectly supports Bitcoin’s potential, with Hougan previously forecasting the asset could reach $43,000–$57,000 by 2026 under similar institutional drivers [10].

The firm’s forecasts are grounded in observable trends, including wallet concentration, capital flow velocity, and macroeconomic correlations. These factors, combined with Ethereum’s network upgrades, position it as a focal point for institutional capital in the post-2024 market environment [11]. However, Bitwise cautions that cryptocurrency markets remain volatile and advises investors to conduct thorough research and consult financial advisors before making investment decisions.

Source: [1] [Ethereum Could See $20B Institutional Inflows, Says Bitwise] [https://thecurrencyanalytics.com/altcoins/ethereum-could-see-20-billion-institutional-inflows-says-bitwise-186901]; [2] [Ethereum's 64% Surge Driven by On-Chain Activity and ...] [https://www.ainvest.com/news/ethereum-news-today-ethereum-64-surge-driven-chain-activity-sentiment-shift-2507/]; [3] [Ethereum Demand Surges 32x Beyond Supply: Bitwise ...] [https://www.mitrade.com/au/insights/news/live-news/article-3-982942-20250724]; [4] [Ethereum’s Projected Growth from Institutional Inflows] [https://coinmarketcap.com/community/articles/6883e5bef4dca2206ba472da/]; [5] [Ethereum Demand Surges 32x Beyond Supply: Bitwise ...] [https://www.mitrade.com/au/insights/news/live-news/article-3-982942-20250724]; [6] [Ethereum News Today: Bitcoin Projected to Surge 43000%] [https://www.ainvest.com/news/ethereum-news-today-bitcoin-projected-surge-43-000-57-000-2026-institutional-adoption-macroeconomic-tailwinds-2507/]; [7] [Ethereum’s Path Mirrors Bitcoin’s Post-ETF Surge] [https://coinmarketcap.com/community/articles/6883e5bef4dca2206ba472da/]; [8] [Crypto market's four-year cycle is 'dead,' Bitcoin halving ...] [https://www.fxstreet.com/cryptocurrencies/news/crypto-markets-four-year-cycle-is-dead-bitcoin-halving-losing-importance-bitwise-executive-202507252018]; [9] [Ethereum's Projected Growth from Institutional Inflows] [https://coinmarketcap.com/community/articles/6883e5bef4dca2206ba472da/]; [10] [Ethereum News Today: Bitcoin Projected to Surge 43000%] [https://www.ainvest.com/news/ethereum-news-today-bitcoin-projected-surge-43-000-57-000-2026-institutional-adoption-macroeconomic-tailwinds-2507/]; [11] [Ethereum Demand Shock Incoming? Bitwise Weighs In] [https://news.bitcoin.com/ethereum-demand-shock-incoming-bitwise-weighs-in/].