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The recent increase in Ethereum's price indicates a growing level of supply and demand imbalance, as noted by Matt Hougan, Chief Investment Officer of Bitwise Asset Management. According to the client memo dated July 22, 2025, Hougan pointed out that the price of Ether increased by over 65% in the last month and by more than 160% since April.
Spot Ether exchange-traded products (ETPs) saw more than $5 billion in net inflows between May 15 and July 20. Meanwhile, several publicly traded companies announced that ETH would be among their core treasury assets.
The ETPs and corporate buyers acquired approximately 2.83 million ETH in nine weeks. In the process, the Ethereum network merely issued around 88,000 ETH and generated a 32-to-1 demand-to-supply ratio.
The listed companies are publicly increasing their acquisition strategies for Ether. Bitmine, SharpLink, Bit Digital, and the Ether Machine have already made significant purchases or announced plans to acquire more. Another example is Bit Digital, which sold its Bitcoins to buy 100,000 ETH following the injection of $170 million in capital. The Ether Machine is conducting an IPO with a $1.6 billion treasury of ETH.
Such advancements suggest that Ether is gaining popularity as a treasury position among companies in the cryptocurrency sector. These purchases would bring the total, according to Bitwise, to up to $20 billion in the year to come, approximately 5.33 million coins at the current prices. Conversely, Ethereum is projected to mint only 800,000 ETH within the same period, implying a 7:1 imbalance between demand and supply.
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According to Hougan, ETH has low representation in the ETP marketplace compared to Bitcoin, where Ether funds own less than 12% of Bitcoin-oriented ETP assets. Although Ether's market capitalization represents only about a fifth of Bitcoin, Bitwise projects even more inflows, particularly since Ethereum will continue to be the most preferred platform for stablecoins and tokenized assets.
By the time of this report, ETH was trading for $3,703. Bitwise estimates that project demand may extend until the end of this year unless there is a significant change in issuance or the regulatory landscape.
