{"id":38343,"date":"2025-07-23T12:16:54","date_gmt":"2025-07-23T12:16:54","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=38343"},"modified":"2025-07-23T12:16:54","modified_gmt":"2025-07-23T12:16:54","slug":"bitwise-cio-on-ethers-demand-shock-why-eths-rally-has-staying-power","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=38343","title":{"rendered":"Bitwise CIO on Ether\u2019s \u2018Demand Shock\u2019: Why ETH\u2019s Rally Has Staying Power"},"content":{"rendered":"
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Ether’s recent price action may be fueled by more than just sentiment. According to Bitwise Asset Management Chief Investment Officer Matthew Hougan, the world\u2019s second-largest crypto asset is undergoing what he calls a \u201cdemand shock,\u201d driven by surging inflows into exchange-traded products and new corporate treasury strategies.<\/p>\n

In a thread<\/a> posted Tuesday on X, Hougan broke down why he believes ether’s rally is only getting started. Since mid-May, he estimates that spot ETH exchange-traded products (ETPs) and corporate treasuries have acquired a combined 2.83 million ETH \u2014 roughly $10 billion at current prices. That\u2019s 32 times greater than the amount of net new ETH issued during the same period.<\/p>\n

\u201cSometimes, it really is that easy,\u201d Hougan wrote, referencing the role of supply and demand in determining short-term prices. He noted that while bitcoin has benefited from this dynamic for more than a year, ETH only began experiencing the same effect recently.<\/p>\n

According to Hougan, spot ether ETPs launched in July 2024, but saw limited traction through the first half of 2025. By May 15, total inflows stood at just $2.5 billion, with ETPs acquiring about 660,000 ETH \u2014 closely matching the 543,000 ETH newly minted by the network. During this period, he says, ETH lacked the same support that drove bitcoin higher: \u201cThere were no major Ethereum Treasury Companies to speak of.\u201d<\/p>\n

That changed in the past two months. Hougan pointed to the emergence of publicly traded treasury holders like BitMine Immersion Technologies (BMNR) and SharpLink Gaming (SBET), which have accumulated hundreds of thousands of ETH while staking for yield. With ETP momentum also accelerating, the combined pressure has created a structural supply imbalance.<\/p>\n

Looking ahead, Hougan predicts demand could rise even further. If treasury firms and ETPs purchase $20 billion in ETH over the next 12 months \u2014 as he believes they could \u2014 that would equate to roughly 5.33 million ETH at today\u2019s prices. By comparison, Etherfeum is projected to issue just 800,000 new ETH over the same timeframe.<\/p>\n

\u201cETH is of course different from BTC,\u201d he acknowledged. \u201cIts price is not set purely by supply and demand, and it doesn\u2019t share BTC\u2019s capped long-term issuance. But right now, that doesn\u2019t matter.\u201d<\/p>\n

At the time of writing, ETH is trading at $3,658, down 0.69% in the past 24 hours, according to CoinDesk Data. Over the past seven, 14, and 30 days, it is up 15.8%, 40.1%, and 62.5%, respectively.<\/p>\n

Technical Analysis Highlights<\/strong><\/p>\n