Ethereum’s Sudden Popularity: Institutional Buyers Going Wild! 🚀

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In these bustling week-long breathless hours, Ethereum (ETH) has unfurled before us like a sumptuous banquet, drawing the gazes of the wealthy aristocrats of finance. Bitwise’s sage of the digital realm, Matt Hougan, presages an imminent shock of prices, almost too tantalizing to imagine.

Alas, the price of Ethereum still wanders shyly at the threshold of $4,000—a lofty peak last grazed by the adventurous in mid-December 2024. 🎢

The Onslaught of Institutions: A New Era for Ethereum

As if inspired by the glittering allure of an untouched treasure trove, ETFs and corporate treasuries have voraciously swallowed the available supply of Ethereum, no longer willing to linger in the shadows. Oh, how swiftly the tides have turned!

Embracing a spirited resurgence after gliding downwards in early 2025, Ethereum has galloped upward on the winds of fortune—more than 50% in the last month alone, and a staggering ascension of over 150% since its dismal lows in April.

Hougan—a name to be whispered with reverence in the marketplace—suggests that the swell of interest from institutions outstrips Ethereum’s own timid net issuance.

“Since May 15, spot Ethereum ETPs have been on a tear, pulling in more than $5 billion…By our estimates, ETPs and corporate treasuries have combined to buy 2.83 million ETH—more than $10 billion at today’s prices. That’s 32x net new supply over the same period,” mused Hougan, embarking on a digital thread of enlightenment.

What a departure from the past! While the whisper of Bitcoin‘s glory rang in July 2024, the prospect of Ethereum ETFs remained subdued—a shy flower blooming sparingly with a mere $2.5 billion in inflows, leaving the market robustly balanced, perhaps too balanced for its own good.

Yet, as if ignited by a flare of ambition, the landscape has shifted with invigorating velocity! Corporate luminaries like BitMine and SharpLink Gaming have donned the mantle of Ethereum treasury strategies, lighting the path for newcomers.

If one were to take a leaf from history, one could observe Bitcoin’s meteoric rise; for, in the past 18 months, BTC ETFs and corporations like MicroStrategy (or as we affectionately dub them, Strategic Micro) snatched more than 100% of Bitcoin’s freshly minted allure.

And now, it seems Ethereum is donning a similar mantle, albeit with bolder, fevered efforts to accumulate. The outlook is a tapestry woven with threads of optimism, as Hougan sees no signs of a slowdown, much to the delight of die-hard supporters.

“ETP investors remain significantly underweight Ethereum versus Bitcoin,” he noted, playfully nudging the audience to contemplate the discrepancies.

Ethereum: The Underdog Still Waiting for Glory

By the gentle hand of Hougan’s observation, we see that Ethereum’s market cap ($449.8 billion) languishes at less than 19% of Bitcoin’s ($2.3 trillion). Moreover, Ethereum ETFs appear precariously balanced, holding just under 12% of Bitcoin ETFs’ assets.

Nevertheless, anticipation simmers beneath the surface! With stablecoins and tokenization garnering interest, the fertile ground promises strong ETH ETF inflows that may last longer than an uninvited guest at a dinner party.

And indeed, a recent report from BeInCrypto heralds that Ethereum ETFs brewed the best month of their existence since May 2024. Cheers to that! 🥳

“With net inflows of $564.2 million in May, $1.17 billion in June, and an additional $507.4 million so far in July, the U.S. Ethereum ETFs have shown strong recent performance. Yesterday’s net inflow of $211.3 million marked the eighth-best day on record,” scribes crypto analyst Mads Eberhardt in joyous proclamation.

Corporate adoption, my friends, is primed to race ahead, as treasury strategies capture the imagination of financial prowlers. Hougan expresses belief that this trend shall continue as long as ETH-holding companies trade at a premium—a delightful conundrum if I do say so.

“Full steam ahead,” he enthusiastically declared, perhaps with a gleam in his eye.

His latest reflections mirror the all-encompassing forecast from July 2. Ah, the beauty of a well-planned strategy! As BeInCrypto has echoed, Hougan anticipates Ethereum ETFs will potentially dominate the latter half of the year 2025.

Flows into Ethereum ETFs are going to accelerate significantly in H2. The combination of stablecoins & stocks moving over Ethereum is an easy-to-grasp narrative for traditional investors.

ETH ETFs did $1.17. billion in flows in June. They could do $10b in H2.

— Matt Hougan (@Matt_Hougan) July 2, 2025

In this balmy atmosphere, Bitwise now projects that ETPs and those ever-ambitious treasury firms could procure a staggering $20 billion worth of Ethereum in the next year—around 5.33 million ether tokens sweeping through the halls of digital finance.

Ah, but the reality is stark: Ethereum’s projected net issuance wavers at a mere 800,000 ETH tokens, setting the stage for a delightful potential imbalance of 7:1. A recipe for suspense, and perhaps even chaos! 😱

“In the short term, the price of everything is set by supply and demand…And for the time being, there is significantly more demand for ETH than there is new supply,” Hougan concluded, leaving us to ponder our next move.

As we glide towards conclusion, Ethereum trades heartily at $3,716, bolstered by a mere 0.82% surge in a mere 24-hour span. Such delightful uneventfulness, is it not?

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2025-07-23 10:07