Author: Matt Hougan, Chief Investment Officer, Bitwise; Translated by: Shaw Golden Finance
The price of Ethereum has been rising recently. Here are the reasons why its price may continue to rise.
The price of Ethereum has risen by more than 65% in the past month and more than 160% since April. But I think it will continue to rise in the coming months for a simple reason: supply and demand.
Let me explain.
The bullish case for Bitcoin is simple: there has been a structural imbalance between demand and supply since the launch of the spot Bitcoin exchange-traded product (ETP) in the United States in January 2024.
What kind of imbalance is this? ETPs, corporations, and governments have bought more than 1.5 million Bitcoins, while only about 300,000 Bitcoins have been generated on the Bitcoin blockchain. Since then, the price of Bitcoin has risen 155%, making it the world's best performing major asset during this period.
Demand is five times greater than supply. Sometimes, it really is that simple.
Until recently, Ethereum has not benefited from the same trend.
As of May 15, 2025, about 10 months after the launch of Ethereum exchange-traded products (ETPs), these ETPs have purchased only 660,000 ETH, with inflows of about $2.5 billion. Meanwhile, purchases by public companies have been negligible. During the same period, the Ethereum network has generated 543,000 ETH, which is basically flat.
As expected, Ethereum’s price has lagged far behind Bitcoin.
Source: Bitwise Asset Management, data range is from December 31, 2023 to July 20, 2025
But things changed in mid-May. Since May 15, the Ethereum spot ETP market has soared, attracting more than $5 billion in funds. Enterprises are also getting in on the action, with several companies announcing new Ethereum treasury reserve management strategies. For example: Bitmine Immersion Technologies (BMNR) began acquiring ETH in late June and currently holds 300,657 ETH (worth $1.13 billion). The company has announced its long-term goal of acquiring 5% of the total ETH supply. SharpLink Gaming (SBET) began acquiring ETH in July and currently holds 280,706 ETH (worth $1.06 billion). The company plans to raise another $6 billion to purchase more ETH. Bit Digital (BTBT) raised $170 million and sold its Bitcoin position to raise funds to purchase more than 100,000 ETH (worth more than $375 million).
Ether Machine (DYNX) announced plans to go public, holding $1.6 billion worth of ETH reserves, and it’s aiming for more.
All told, ETPs and public companies have purchased 2.83 million ETH since mid-May, over $10 billion at current prices, and 32x the increase in ETH supply over the same period.
No wonder ETH’s price has skyrocketed.
The right question to ask next is: Will this continue?
We think the answer is yes.
Investors are still unbalanced between Ethereum and Bitcoin: Ethereum ETPs have accumulated less than 12% of the assets of Bitcoin ETPs, despite Ethereum’s market cap being about 20% of Bitcoin’s. Given all the hype around stablecoins and tokenization (mostly built on Ethereum), we think this will change, with billions of dollars of capital flowing in over the coming months.
Meanwhile, all signs point to the “ETH Treasury Reserve” trend accelerating. The key to the growth of a cryptocurrency treasury company is if its publicly traded stock price is higher than the value of its cryptocurrency holdings, which is currently the case with Ethereum treasuries. For example, BMNR and SBET’s stock prices are nearly double the value of their Ethereum holdings. As long as this continues, it’s a safe bet that Wall Street firms will invest more money in buying ETH.
Looking ahead, we would not be surprised if ETPs and ETH Treasury Reserve Managers buy $20 billion of ETH over the next year, which would equate to 5.33 million ETH at current prices. Meanwhile, the Ethereum network is expected to add about 800,000 ETH over the same period. This means that demand is almost 7 times the new supply, which is even higher than the level Bitcoin has seen since the launch of spot ETPs in 2024.
You could say that Ethereum is different from Bitcoin, its price is not purely determined by supply and demand, and it does not have a long-term issuance cap like Bitcoin. In an absolute sense, this is true, but it is not important at the moment.
In the short term, the price of everything is determined by supply and demand, and currently the demand for ETH is greater than the supply. Therefore, I think its price will continue to rise.
Sometimes, it really is that simple.
President Putin has called Bitcoin "unstoppable" and expressed confidence in crypto's growth, regardless of the US dollar's future. Russia is advancing digital asset adoption with a new crypto law, VAT exemptions for mining, and exploring crypto payments.
CatherineApple is partnering with Baidu to integrate AI into iPhones in China, but the collaboration faces challenges with Baidu's AI models struggling to meet user expectations and privacy concerns over data handling. Despite these issues, Apple continues to fund Baidu’s AI development to enhance the experience on its devices.
AnaisBitcoin hit a new all-time high today, surpassing $103,000, driven by strong market sentiment, especially after Donald Trump’s election victory. The cryptocurrency has surged 126% since the start of 2024. Could 2025 be an even stronger year for Bitcoin?
KikyoA 19-year-old hacker, Remington Ogletree, is accused of working with the cybercrime group Scattered Spider to hack telecom companies and a US financial institution, causing $4 million in damages. He allegedly used phishing and SIM-swapping to steal data and cryptocurrency, highlighting the growing threat of cybercrime.
WeatherlyCrypto founders secured nine spots in Forbes' 2025 “30 Under 30” finance list, highlighting blockchain's rising impact on finance. Will the time come when crypto pioneers dominate the list entirely?
CatherineOpenAI has partnered with Anduril to integrate AI into military systems, focusing on countering drone threats. This marks a shift for OpenAI, which previously avoided military applications, as it works with defence contractors to improve national security technology.
AnaisHailey Welch's $HAWK memecoin quickly soared to a $500 million market cap before crashing by 91% within hours, sparking suspicions of insider trading and potential fraud. The controversy has led to calls for legal action, with investors questioning whether the project was a scam.
WeatherlyBitcoin surpassed $100,000 on 5 December, driven by growing optimism following Trump’s pro-crypto appointments, including Paul Atkins for SEC Chair. This milestone signals investor confidence in a crypto-friendly future under Trump’s upcoming administration, which takes office on 20 January 2025.
JoyThe SEC has intensified its legal action against Binance and former CEO Changpeng Zhao, accusing them of operating as an unregistered securities exchange. This follows an amended lawsuit claiming the sale of unregistered cryptocurrencies like Solana and Cardano on their platform.
AnaisDubai has become a hotspot for major cryptocurrency scams, with fraudulent schemes like HyperVerse, OneCoin, and Bitconnect defrauding billions from investors. Despite efforts to improve regulations, the UAE's weak oversight has allowed scammers to thrive, drawing international concern.
Weatherly