Ethereum Faces $10B Demand Shock as ETFs and Treasuries Soak Up Supply, Says Bitwise CIO
Ethereum is undergoing a significant structural shift that could sustain its recent price surge, according to Bitwise CIO Matthew Hougan, who pointed to an intensifying “demand shock” driven by exchange-traded products (ETPs) and corporate accumulation.
In a detailed thread posted Tuesday on X, Hougan explained that Ethereum’s market dynamics have fundamentally changed over the past two months. He estimates that since mid-May, spot ETH ETPs and corporate treasury buyers have collectively acquired 2.83 million ETH — worth approximately $10 billion at current prices. That figure dwarfs the 87,000 ETH issued over the same timeframe.
“Sometimes, it really is that simple,” Hougan wrote, referring to the classic supply-demand equation now playing out for ETH. While Bitcoin has seen strong institutional demand for over a year, ETH is just beginning to see similar structural inflows.
ETPs, Treasuries Fuel Fresh Buying Pressure
Spot ETH ETPs launched in July 2024, but traction remained limited through early 2025. As of May 15, total ETP inflows stood at just $2.5 billion, equal to 660,000 ETH, roughly matching the 543,000 ETH newly issued by the Ethereum network.
According to Hougan, the equation changed once corporate treasuries entered the market. Publicly listed firms like BitMine Immersion Technologies (BMNR) and SharpLink Gaming (SBET) began actively accumulating ETH for staking, pushing demand well beyond the network’s issuance rate.
With both ETF inflows and treasury purchases accelerating in tandem, Ethereum now faces a deepening supply imbalance that Hougan believes could push prices structurally higher.
Looking Forward: More Demand, Limited Supply
If the current trend continues, Hougan projects that treasuries and ETPs could purchase another $20 billion worth of ETH — or roughly 5.33 million coins — over the next year. By contrast, Ethereum is expected to issue only 800,000 new ETH in that period, due to its post-Merge deflationary model.
While Hougan acknowledged that Ethereum differs from Bitcoin in key ways — particularly its lack of a fixed supply cap — he emphasized that such distinctions may not matter in the short term.
“ETH’s price isn’t governed solely by supply and demand,” Hougan noted. “But right now, supply and demand are the story.”
Market Snapshot
At publication time, ETH trades at $3,658, down 0.69% on the day. Over the last 30 days, the asset has rallied over 62%, with notable strength across all timeframes: +15.8% (7-day), +40.1% (14-day), and +62.5% (30-day).
Technical Levels to Watch
- Price Range (July 22–23): ETH traded in a $134.34 band between $3,763.70 and $3,629.35.
- Key Resistance: Strong institutional selling appeared near $3,750–$3,760, with volumes peaking at 445,297 contracts.
- Support & Pivot: The $3,700 level remains a key technical pivot, acting as both resistance and support.
- Closing Action: ETH closed at $3,661.35, slipping 1% as sell pressure emerged late in the session.
- Distribution Signs: Repeated volume spikes above $3,740 suggest potential consolidation ahead.
