ETPs and corporate treasuries have acquired 2.83 million ETH since May 15, far outpacing Ethereum’s net issuance over the same period.
ETH ETP inflows crossed $5 billion within two months, marking a sharp increase from tepid activity earlier in 2025 and boosting institutional demand.
Projected ETH demand for the next year stands at 5.33 million coins, while expected network issuance is only 800,000—a 7:1 demand-supply ratio.
The Ethereum Demand Shock is shaping the market as institutional investors sharply increase their ETH accumulation. Following months of muted price action, Ethereum has gained more than 50% in the past month and over 150% since April 2025. This shift comes after a sudden influx of demand from Ethereum ETPs and corporate treasury buyers, according to a thread posted by Bitwise CIO Matt Hougan.
Ethereum’s Price Recovery After Prolonged Decline
Ethereum traded lower throughout the first four months of 2025. From January to April, the asset drifted downward without strong momentum. However, a dramatic reversal began in mid-May. According to Hougan, the recovery is driven by demand-side forces rather than network upgrades or speculative rallies.
The rally aligns with a pattern observed earlier with Bitcoin, where institutional investors—mainly ETPs and corporate treasuries—absorbed more supply than was being generated. Hougan notes that Ethereum is now entering a similar phase.
Bitcoin Set the Stage for Institutional-Led Demand
Providing context, Hougan referenced the impact of institutional demand on Bitcoin. Since spot Bitcoin ETPs launched in January 2024, ETPs and corporate treasuries have purchased 1.5 million BTC. Over the same period, the Bitcoin network produced just 300,000 BTC. That represents five times more demand than supply.
This imbalance created a sustained upward pressure on BTC’s price. Hougan’s key point is that Ethereum had not seen similar demand—until recently. Although ETH ETPs launched in July 2024, they drew minimal investment during their initial months.
Tepid ETH Demand Until Mid-May 2025
As of May 15, 2025, Ethereum ETPs had bought about 660,000 ETH, with such an amount of assets as about $2.5 billion in inflows. In the same span of time, the Ethereum network has generated a net quantity of 543,000 ETH. This supply nearly matched the demand, resulting in limited price movement.
There were also no major announcements from corporate treasuries regarding ETH holdings during that period. Hougan attributed Ethereum’s sideways and downward price action to this supply-demand balance.
Institutional Demand Accelerates After May 15
After mid-May, a major shift occurred. Spot ETH ETPs began attracting large inflows, exceeding $5 billion in under two months. At the same time, corporations such as Bitmine and SharpLink publicly revealed Ethereum treasury strategies, adding to institutional demand.
Hougan estimated that from May 15 onward, ETPs and corporate treasuries purchased 2.83 million ETH. At current prices, this equals over $10 billion in value. By contrast, the Ethereum network issued only a fraction of that amount during the same timeframe, leading to a 32:1 demand-to-supply ratio.
Ethereum ETP Holdings Still Trail Bitcoin ETPs
Despite the recent growth, Hougan emphasized that Ethereum remains underrepresented in institutional portfolios. Ethereum’s market capitalization is about 19% that of Bitcoin. However, Ethereum ETPs currently hold less than 12% of the assets held by Bitcoin ETPs.
This indicates that Ethereum’s institutional allocation is still in its early stages. Hougan expects further ETH inflows driven by rising adoption of tokenization and stablecoins, which continue to depend on Ethereum’s infrastructure.
ETH Treasury Companies May Expand Further
According to Hougan, the growth of ETH treasury companies could accelerate. A key incentive is whether the market values these companies at a premium to the crypto assets they hold. Hougan stated that this condition currently applies to ETH treasury stocks, creating further motivation for corporations to acquire Ethereum.
Looking forward, Hougan predicted that ETPs and corporate treasuries could buy $20 billion worth of ETH over the next year—equivalent to 5.33 million ETH at today’s price. Meanwhile, Ethereum is expected to produce only 800,000 ETH during the same timeframe, yielding a projected 7:1 demand-to-supply imbalance.
Hougan closed by noting that, while Ethereum differs from Bitcoin in its long-term supply model, the near-term price is driven primarily by supply and demand. Presently, demand for ETH from institutions far outweighs new issuance, contributing to the ongoing rally.
