The post Why Ethereum Will Keep Climbing in Coming Months: Bitwise appeared on BitcoinEthereumNews.com.

In brief After pulling in $2.5 billion over the first 10 months since launch, Ethereum ETFs have attracted $5 billion since mid-May alone, signaling accelerating institutional demand. Analysts note that price momentum is lagging behind institutional inflows. While the long-term outlook remains bullish due to institutional adoption, one analyst is positioning for a potential short-term dip and maintaining cash reserves to capitalize on better entry points. Ethereum, which has spiked nearly 14% over the past week, will likely “head higher in the coming months,”as investor demand for ETH outstrips demand, according to Bitwise Chief Investment Officer Matt Hougan, Exchange-traded products based on Ethereum and treasury companies are likely to buy $20 billion of the asset over the next year, while the Ethereum network will probably produce 800,000 ETH during the same period, Hougan wrote. “That’s nearly 7x more demand than new supply—an even higher ratio than we’ve seen for Bitcoin since the spot ETPs launched in 2024,” Hougan wrote in a recent memo. “You could argue that ETH is different from BTC, that its price is not set purely by supply and demand, and that it doesn’t share BTC’s capped long-term issuance. That’s true in an absolute sense, but right now, it doesn’t matter.” “In the short term, the price of everything is set by supply and demand, and right now, there is more demand for ETH than supply. As a result, I think we’re heading higher,” he wrote. Hougan attributed Ethereum’s recent gains largely to the impact of Ethereum exchange-traded products, which debuted a year ago to a lukewarm reception but whose momentum has accelerated since mid-May, and rapid expansion of ETH treasuries. “Spot Ethereum ETPs have been on a tear,” Hougan wrote. “Corporations have also gotten into the game, with multiple firms announcing the creation of new Ethereum…

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Filed under: News - @ July 23, 2025 10:28 pm