Ethereum’s latest surge may be more than just market momentum—it’s being powered by a flood of institutional buying, according to Bitwise Chief Investment Officer Matt Hougan.
Since mid-May, large entities have reportedly snapped up nearly 2.83 million ETH, a figure that dwarfs Ethereum’s own issuance during the same timeframe. That $10 billion demand shock, Hougan argues, is what’s driving prices higher—and he expects it to continue.
Spot ETH ETFs and corporate treasuries have played a major role, with more than $5 billion worth of ETH flowing into ETFs alone since their launch. Hougan likened the move to Bitcoin’s rally after the approval of BTC spot ETFs earlier this year, suggesting Ethereum is now following a similar path.
Companies such as BitMine Immersion, SharpLink Gaming, and Bit Digital have also jumped in, acquiring large ETH holdings as part of their strategic reserves. With demand outpacing supply by a wide margin, Hougan believes Ethereum could see ETF-driven inflows reach $20 billion over the next year.
As the crypto landscape shifts, ETH’s growing appeal to institutional investors may be setting the stage for a prolonged rally beyond the $3,800 mark.
Editorial Team
Reporter at Coindoo
Source: https://coindoo.com/market/ethereum-rally-backed-by-billion-dollar-institutional-demand/