Author: Matt Hougan, Chief Investment Officer at BitWise
Translation: Tim, PANews
This article will analyze why the price of Ether is rising and the reasons it will continue to rise in the coming months.
Ethereum is experiencing explosive growth. After a continuous decline in the first four months of this year, it has now shown a strong rebound. Over the past month, it has surged more than 50%, and since the low in April, it has soared nearly 150%.
What is the reason? The demand for ETFs and listed companies is enormous.
Background information:
Over the past 18 months, the continuous rise in Bitcoin prices has stemmed from a simple fact: the number of new Bitcoins purchased by ETPs and corporate funds has exceeded the total new supply of Bitcoins during the same period.
Let’s look at a set of comparative data: since the listing of Bitcoin ETPs in January 2024, listed company reserves and ETP organizations have accumulated purchases of 1.5 million Bitcoins, while only 300,000 Bitcoins were newly produced by mining during the same period.
Demand is five times that of supply. Sometimes the reason is that simple: supply imbalance.
Until recently, Ethereum failed to enjoy the same market enthusiasm. The Ethereum ETP debuted in July 2024, but the market initially cooled. As of May 15, 2025, only 660,000 Ether (corresponding to about $2.5 billion in inflows) were purchased for the Ethereum ETP.
Meanwhile, there are no iconic large Ethereum reserve companies.
During this period, Ethereum net issuance increased by 543,000 Ether, which is basically in line with market demand; no wonder Ether's price experienced a sideways (and downward) trend!
However, mid-May marked a turning point. Since May 15, Ethereum spot ETPs have been extremely popular, attracting over $5 billion in funds. Companies are also jumping in, with firms like Bitmine and SharpLink announcing their inclusion of Ethereum in corporate asset allocation.
According to our estimates, since May 15, ETPs and corporate reserves have purchased a total of 2.83 million Ether (valued at over $10 billion at current prices), equivalent to 32 times the newly issued Ether supply during the same period.
No wonder the price of Ether has skyrocketed!
The correct question to ask at this moment is: will this situation continue? I believe the answer is "yes."
ETP investors' allocation to Ethereum remains significantly lower than Bitcoin: although Ethereum's market capitalization is about 19% of BTC, the total size of Ethereum ETPs is still less than 12% of Bitcoin ETPs.
With the market's growing interest in stablecoins and tokenization, we expect the inflows into Ethereum ETPs to remain strong in the long term.
At the same time, various signs indicate that the development trend of 'Ethereum Financial Companies' will accelerate. The reason for this belief is whether the market capitalization of these companies' stocks exceeds the value of the cryptocurrency assets they hold, and currently, there is indeed a premium phenomenon for Ethereum reserve companies.
Full speed ahead!
Looking ahead, I anticipate that ETPs and asset management institutions may purchase Ethereum worth $20 billion next year, translating to approximately 5.33 million Ether at today's prices, while the Ethereum network is expected to produce about 800,000 Ether during the same period.
Ethereum is clearly different from BTC; its price is not solely determined by supply and demand and does not have the fixed mining cap that Bitcoin has. But currently, that doesn't matter.
In the short term, the price of any commodity is determined by supply and demand, and currently, the market demand for Ether has significantly exceeded the new supply.
In summary, I believe we will continue to rise.
(The above content is excerpted and reprinted with permission from our partner PANews, original link)
"BitWise Chief Investment Officer: Bulls crush bears, ETH price will continue to rise" this article was first published on (Blockster).
