Ethereum News Today: Ethereum Price Surges 50% on Institutional Demand and ETF Launch

Ethereum’s price has surged more than 50% in the past month, rebounding from a low in April and drawing significant attention from institutional investors. This rapid ascent is attributed to growing demand from corporate treasuries and the launch of Ethereum-based exchange-traded products (ETFs) in July 2024. According to Bitwise’s Matt Hougan, the trend reflects a structural shift in how institutions view Ethereum, with inflows into spot ETFs exceeding $5 billion since May 15. This period saw corporate and ETF purchases of 2.83 million ETH, valued at over $10 billion, outpacing new supply by 32 times and directly contributing to the price rally [1].

The surge in institutional activity is further evidenced by the strategies of firms like Bitmine and SharpLink, which have revealed plans to acquire Ethereum. Hougan noted that this level of demand could persist, fueled by ongoing developments in stablecoin markets and tokenization. He projected that ETFs and treasuries may accumulate $20 billion in ETH over the next year, translating to 5.33 million ETH—a demand rate seven times the network’s projected supply of 0.80 million ETH during the same period [1].

Ethereum’s institutional adoption gained momentum in July 2025, with the cryptocurrency rising 36% to $3,597. BlackRock’s ETHA ETF, the largest of its kind, surpassed $10 billion in assets under management (AUM), highlighting the asset’s growing legitimacy. Weekly inflows into Ethereum ETFs exceeded $2 billion, with BlackRock alone attracting $8.07 billion in a seven-day span [7]. This growth is attributed to Ethereum’s deflationary supply dynamics, as daily burns of approximately 8,470 ETH have reduced circulating supply and tightened liquidity [9].

The price trajectory has been closely tied to ETF activity. From early April to mid-July 2025, Ethereum climbed from $1,750 to $3,400, outperforming most cryptocurrencies. The ETH/BTC ratio also signaled a rising preference for Ethereum within altcoin rotations. Hougan emphasized the network’s proof-of-stake mechanism and environmental advantages as key attractions for institutional capital, alongside its utility in decentralized finance (DeFi) [5]. However, challenges remain, including the absence of staking functionality in current ETFs, which limits yield generation for investors [10].

While forecasts for Ethereum’s price remain optimistic, volatility and regulatory uncertainties pose risks. A February 2025 correction led to $13.1 million in net outflows from Ethereum ETFs amid macroeconomic concerns [12]. Expense ratios for these funds, ranging from 0.25% to 0.95%, also present a barrier for cost-sensitive investors. Looking ahead, potential regulatory clarity—such as the pending GENIUS Act—could unlock further institutional capital, particularly from pension funds and sovereign wealth entities [12].

The market’s current dynamics underscore Ethereum’s transition from a speculative asset to a cornerstone of diversified portfolios. With continued institutional demand and technological advancements, Ethereum’s role in the global financial system appears to be solidifying [1].

Source: [1] [Ethereum Gains Institution Traction with Rapid Price Surge](https://coinmarketcap.com/community/articles/688407bbb3b1251ca9df7500/)

[5] [Bitwise's Matt Hougan pins ETH recent performance to a](https://www.mitrade.com/insights/news/live-news/article-3-981458-20250724)

[7] [BlackRock's Ethereum ETF Surpasses $10B](https://cryptodnes.bg/en/blackrocks-ethereum-etf-surpasses-10b-becomes-3rd-fastest-in-history/)

[9] [The Impact of Ethereum ETFs on ETH Price](https://nftevening.com/ethereum-etfs-impact/)

[10] [Forward Drivers: Staking, Regulation, and Altcoin Expansion](https://nftevening.com/ethereum-etfs-impact/)

[12] [Risks and Limitations](https://nftevening.com/ethereum-etfs-impact/)