Ethereum is poised for historic growth fueled by surging institutional demand, driven by exchange-traded products (ETPs) and corporate treasury allocations. Analysts project potential inflows exceeding $20 billion over the next year as institutional interest significantly outpaces the network’s new token issuance.
The cryptocurrency’s price has surged over 50% in the past month, largely attributable to institutional buying that currently exceeds Ethereum’s net issuance. This wave of institutional capital is reflected in spot Ethereum ETPs attracting over $5 billion since mid-May.
Combined purchases by these ETPs and corporate treasuries total approximately 2.83 million ETH, valued north of $10 billion. Despite this bullish activity, Ethereum’s market capitalization stands at approximately $449.8 billion, representing less than 19% of Bitcoin’s $2.3 trillion valuation – a gap suggesting potential undervaluation to some analysts.
Looking ahead, asset manager Bitwise projects that newly approved spot Ethereum ETFs will be major catalysts in the second half of 2025, capturing significant inflows that could reach $10 billion during that period alone. The anticipated imbalance between demand and supply appears stark.
Financial firms are projected to acquire as much as $20 billion worth of Ethereum in the next 12 months. This demand is set against an expected net issuance of approximately 800,000 ETH tokens, indicating a potential demand-to-supply ratio nearing 7:1.