Ethereum News Today: Institutional Buying Drives Ethereum 50% Higher in a Month

Ethereum’s recent price surge has been attributed to a sharp increase in institutional demand, as highlighted by Matt Hougan, Chief Investment Officer at Bitwise Asset Management. According to Hougan, a “demand shock” is currently unfolding in the Ethereum market, driven primarily by large-scale purchases from exchange-traded products (ETPs) and corporate treasuries [2]. Over $10 billion in ETH has been acquired by institutional players since mid-May 2025, with spot Ethereum ETPs capturing a growing share of the market [2].

This institutional buying spree has contributed to Ethereum’s price rebound, with the asset surging more than 50% in the past month and over 150% from its lows in April 2025 [2]. Hougan noted that the demand from ETPs has significantly outpaced the new supply of ETH, creating a scenario where scarcity and capital inflows are reinforcing Ethereum’s value [2]. The increased demand has also tightened the supply of ETH in the open market, a factor that is often associated with upward price pressure.

Institutional interest in Ethereum is not just limited to ETPs. Firms like SharpLink have continued to add to their Ethereum holdings, with the latest purchase bringing its total investment to $1.65 billion [4]. These moves signal growing confidence among institutional investors in Ethereum’s long-term potential and its role as a strategic asset class.

The surge in Ethereum’s price has also spilled over into its broader ecosystem, with decentralized finance (DeFi) and governance tokens experiencing increased valuations [2]. Analysts suggest that as more institutional players allocate capital to Ethereum, the network is likely to see greater participation and further development in its associated projects [2].

While some forecasts suggest Ethereum could reach $5,600 by November 2025 [1], such projections remain speculative and subject to external factors such as macroeconomic conditions and regulatory developments. However, the current momentum driven by institutional buying indicates a strong foundation for continued appreciation, at least in the near term.

Ethereum’s trajectory mirrors similar price dynamics observed with Bitcoin during the launch of Ethereum-based ETFs. However, Ethereum’s unique supply characteristics, combined with its evolving use cases, present distinct advantages for long-term investors [2]. As institutional adoption continues, Ethereum appears to be transitioning from a speculative asset to a more integral component of institutional portfolios.

Source:

[1] Pundit Predicts Timeline For Ethereum To Reach $5600 (https://thecryptobasic.com/2025/08/05/pundit-predicts-timeline-for-ethereum-to-reach-5600/)

[2] BITCOIN EXPERT INDIA (@Btcexpertindia) on X (https://x.com/Btcexpertindia/status/1952671068105367692)

[3] Here Are 4 Bullish Signals: ETH Momentum Is Building (https://cryptoadventure.com/here-are-4-bullish-signals-eth-momentum-is-building/)

[4] SharpLink buys another $54M in ETH, now holds $1.65B (https://m.fastbull.com/en/news-detail/sharplink-buys-another-54m-in-eth-now-holds-news_6100_0_2025_3_6468_3)