The recent rise in Ethereum (ETH) has attracted all the attention and led the way for altcoins.
While the reasons for the rise in Ethereum continue to be discussed, Bitwise CIO Matt Hougan said that Ethereum's recent rise is mainly due to the sharp increase in institutional demand.
According to The Block, Bitwise CIO stated that there was a demand shock in ETH.
Hougan said that since May 15, institutions have purchased approximately 2.83 million ETH with an estimated value of $10 billion, which is approximately 32 times more than what the network generated during that period.
Stating that he expects this institutional demand and upward trend in Ethereum to continue, the Bitwise CIO estimated that ETFs and institutional treasuries could purchase 5.33 million ETH worth approximately $20 billion next year.
Hougan also likened the current situation in Ethereum to Bitcoin's rally in 2024. The famous CIO pointed out that the surge in demand experienced after the approval of spot BTC ETFs in January 2024 was also experienced in ETH.
At this point, Hougan said that the demand increase in Ethereum started late compared to Bitcoin, and that spot ETH ETFs have bought more than $5 billion worth of Ethereum since mid-May.
“Apart from ETFs, companies like BitMine Immersion, SharpLink Gaming, Bit Digital, and the soon-to-be-IPO The Ether Machine have announced significant treasury strategies.
These entities purchased a total of 2.83 million ETH, likely extending the current rally above $3.80.”
*This is not investment advice.
