Bitwise Predicts $20 Billion Institutional Surge for Ethereum – Here’s Why ETH Could Skyrocket
- Why Is Ethereum Facing a Historic Demand Shock?
- How Did Ethereum’s Institutional Adoption Accelerate So Fast?
- Is Ethereum Still Undervalued Compared to Bitcoin?
- What’s the $20 Billion Institutional Surge All About?
- How Has ETH’s Price Reacted So Far?
- FAQs: Ethereum’s Institutional Boom
Ethereum (ETH) is witnessing unprecedented institutional demand, with Bitwise CIO Matt Hougan forecasting a potential $20 billion influx from ETFs and corporate treasuries in the coming year. This surge, driven by a 7:1 demand-supply imbalance, could propel ETH prices to new highs. Meanwhile, ETH’s market cap remains undervalued compared to Bitcoin, signaling room for growth. Dive into the data, trends, and expert insights shaping Ethereum’s bullish trajectory.
Why Is Ethereum Facing a Historic Demand Shock?
Institutional players are gobbling up ETH at a pace that’s outstripping supply. Since mid-May 2025, spot ethereum ETPs have absorbed over $5 billion, while corporate treasuries and ETFs collectively bought 2.83 million ETH (worth $10 billion). That’sthe net new supply during the same period, according to Bitwise’s Matt Hougan. To put it bluntly, the market’s about to feel the squeeze.
How Did Ethereum’s Institutional Adoption Accelerate So Fast?
It’s a classic case of "slow burn, then boom." Ethereum ETFs launched in July 2024 but only gained traction after May 2025, with inflows jumping from $2.5 billion to $1.17 billion in June alone. Companies like BitMine and SharpLink Gaming added fuel by announcing ETH treasury strategies—mirroring Bitcoin’s institutional playbook. As Hougan notes, "ETPs and corporates are buying ETH faster than miners can mint it."
Is Ethereum Still Undervalued Compared to Bitcoin?
Absolutely. ETH’s $449.8 billion market cap is less than 19% of Bitcoin’s $2.3 trillion, and ETH ETFs hold just 12% of bitcoin ETF assets. But here’s the kicker: Stablecoin growth and tokenization trends could flip this script. Hougan predicts ETH ETFs might pull in $10 billion in H2 2025—up from June’s $1.17 billion haul. "ETH’s narrative—stablecoins, stocks on-chain—it’s an easy sell for traditional investors," he tweeted.
What’s the $20 Billion Institutional Surge All About?
Bitwise projects ETPs and corporates could buy $20 billion worth of ETH (5.33 million tokens) in the next year, dwarfing the 800K ETH in net new supply. That’s a. "Price is about supply and demand," Hougan emphasizes. "Right now, demand’s running laps around supply."
How Has ETH’s Price Reacted So Far?
ETH traded at $3,716 at press time (+0.82% in 24h), still below its $4K psychological barrier. But with a 50% monthly gain and 150% rebound from April lows, the momentum’s undeniable. As one BTCC analyst put it, "This isn’t retail FOMO—it’s institutions building long-term positions."
FAQs: Ethereum’s Institutional Boom
Why is institutional demand for Ethereum surging now?
Three words: ETFs, treasuries, and tokenization. After a slow start, Ethereum ETFs gained momentum in mid-2025, while corporations like BitMine began allocating to ETH as a treasury asset.
How does Ethereum’s demand-supply imbalance compare to Bitcoin’s?
Bitcoin saw a 100% absorption of new supply by institutions. Ethereum’s 7:1 imbalance is even more extreme—partly due to its lower issuance rate.
Could Ethereum’s price break $4,000 soon?
With $20 billion in potential institutional inflows, many analysts believe it’s inevitable. However, market conditions and macroeconomic factors could influence the timeline.
