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Ethereum Demand Shock Incoming? Bitwise Weighs In
Matt Hougan, CIO of Bitwise, believes that the trend of Ethereum Treasury Companies will accelerate, prompting new investors to enter the space and purchase ether even at premium prices. He estimates that demand for ether will outpace production at a ratio of 7:1 over the next year.
Bitwise: Ethereum Treasury Trend to Last, Demand Shock to Send Prices Soaring
The sudden surge in investor interest in ethereum, driven by recently adopted regulations in the U.S., has analysts estimating the extent of this trend and its implications for the price of ETH. Matt Hougan, CIO of Bitwise, believes that this newfound institutional interest has the potential to increase demand for ether and keep the good momentum for the asset this year and beyond.
Hougan states that, while bitcoin had been facing increased demand from companies like Michael Saylor’s Strategy and Exchange Traded Products (ETPs) since January, purchasing over 1.5 million BTC since January 2024, ethereum had not benefited from similar actions until now.
Nonetheless, this changed in May, when ethereum ETPs and the new trend of Ethereum Treasury Companies started showing interest, syphoning over $5 billion worth of ETH from the market.
Hougan declared:
ETPs and Corporate Treasuries have combined to buy 2.83 million ETH since May 15—more than $10 billion at today’s prices. That’s 32x net new supply over the same time period.
He predicts that his trend will persist, as investors are significantly underweight when comparing ether vs. bitcoin, and the surging trend of tokenization and stablecoins can also push this rally forward.
“Looking out, I can imagine ETPs and Treasury Companies buying $20 billion of ETH in the next year, or 5.33 million ETH at today’s prices,” Hougan assessed. If fulfilled, this prediction might bring what he called a “demand shock” to the ether markets, as the network would only produce 0.80 million ETH during the same period, with demand outpacing production 7 to 1.
“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,” he concluded.
#Binance #wendy #BTC $BTC $ETH $BNB
Bitwise: Ethereum Treasury Trend to Last, Demand Shock to Send Prices Soaring
The sudden surge in investor interest in ethereum, driven by recently adopted regulations in the U.S., has analysts estimating the extent of this trend and its implications for the price of ETH. Matt Hougan, CIO of Bitwise, believes that this newfound institutional interest has the potential to increase demand for ether and keep the good momentum for the asset this year and beyond.
Hougan states that, while bitcoin had been facing increased demand from companies like Michael Saylor’s Strategy and Exchange Traded Products (ETPs) since January, purchasing over 1.5 million BTC since January 2024, ethereum had not benefited from similar actions until now.
Nonetheless, this changed in May, when ethereum ETPs and the new trend of Ethereum Treasury Companies started showing interest, syphoning over $5 billion worth of ETH from the market.
Hougan declared:
ETPs and Corporate Treasuries have combined to buy 2.83 million ETH since May 15—more than $10 billion at today’s prices. That’s 32x net new supply over the same time period.
He predicts that his trend will persist, as investors are significantly underweight when comparing ether vs. bitcoin, and the surging trend of tokenization and stablecoins can also push this rally forward.
“Looking out, I can imagine ETPs and Treasury Companies buying $20 billion of ETH in the next year, or 5.33 million ETH at today’s prices,” Hougan assessed. If fulfilled, this prediction might bring what he called a “demand shock” to the ether markets, as the network would only produce 0.80 million ETH during the same period, with demand outpacing production 7 to 1.
“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,” he concluded.
#Binance #wendy #BTC $BTC $ETH $BNB
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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