Ethereum News Today: Institutional demand drives 50% Ethereum price surge as ETF inflows and treasuries absorb 2.8M ETH

Bitwise has highlighted a potential historic surge in Ethereum (ETH) prices, driven by unprecedented institutional demand. The firm attributes this momentum to a combination of Ethereum ETF inflows and corporate treasury strategies that are rapidly absorbing available supply. Over the past month, institutional investors have acquired over 2.8 million ETH, coinciding with a 50% price rally and signaling robust market confidence. This accumulation phase, according to Bitwise’s Chief Investment Officer Matt Hougan, creates a demand-supply imbalance that could fuel further price appreciation.

Key to this dynamic is the role of Ethereum ETFs, which have attracted over $5 billion in spot inflows since mid-May. When combined with corporate treasury purchases, total institutional demand has reached approximately 2.83 million ETH, valued at over $10 billion at current prices. This represents a demand nearly 32 times greater than Ethereum’s net issuance during the same period, according to Hougan. The CIO emphasized that ETP investors remain significantly underweight in Ethereum compared to Bitcoin, suggesting substantial room for continued inflows and upward price pressure.

Ethereum’s current market capitalization of $449.8 billion lags behind Bitcoin’s $2.3 trillion valuation, a gap that Bitwise views as indicative of its undervaluation in institutional portfolios. The firm anticipates sustained inflows into Ethereum ETFs, supported by expanding use cases such as stablecoins and tokenization on the Ethereum blockchain. Recent data from COINOTAG shows Ethereum ETFs recording record inflows, including a single-day influx of $211.3 million—the highest on record for the asset. This trend mirrors Bitcoin’s institutional adoption pattern, where corporate buyers and ETFs have historically absorbed more than 100% of new issuance.

Bitwise projects that institutional and corporate treasury demand could reach $20 billion over the next 12 months, equivalent to 5.33 million ETH tokens. By comparison, Ethereum’s net issuance is expected to generate just 800,000 ETH during the same period, creating a demand-to-supply ratio of nearly 7:1. Hougan notes that “the price of everything is set by supply and demand,” and for Ethereum, demand now far exceeds new supply. This imbalance, coupled with growing corporate adoption of Ethereum as a treasury asset, could underpin sustained price growth.

At the time of reporting, Ethereum traded at $3,716, up 0.82% in the previous 24 hours. The firm’s analysis suggests that Ethereum ETFs could dominate the second half of 2025, with inflows potentially exceeding $10 billion in that period alone. Hougan emphasized that as long as publicly traded companies continue to hold Ethereum at premiums relative to their asset valuations, the fundamental case for the asset remains strong. Investors are advised to monitor ETF inflows and corporate treasury announcements closely, as these factors are expected to shape Ethereum’s trajectory in the coming months.