Bitwise Chief Investment Officer Matt Hougan forecasts a severe Ethereum supply-demand imbalance fueled by institutional capital, with projected demand potentially exceeding new supply by $20 billion within the coming year. According to Hougan’s analysis, exchange-traded products and corporate treasury acquisitions will drive this demand spike while only 800,000 new ETH enter circulation.
The institutional accumulation of Ethereum is visibly accelerating. Spot Ethereum ETPs recorded inflows so substantial in mid-May that they doubled the cumulative total from the prior ten-month period. Companies like BitMine Immersion, Sharplink Gaming, and Bit Digital have significantly bolstered their ETH holdings, underscoring growing corporate adoption.
Regulatory clarity provided by the recently passed GENIUS Act has further incentivized institutional participation. ARK Invest’s $182 million acquisition of BitMine Immersion (BMNR) shares exemplifies this renewed market confidence.
Despite strong fundamentals pointing to supply constraints, Ethereum faces short-term volatility. The asset recently experienced a 2% price dip during active trading sessions, fluctuating near the $3,600 level. This contrast highlights the tension between immediate market movements and longer-term structural demand pressures potentially paving the way for future price appreciation.