Bitwise’s Director of Investments, Matt Hougan, has predicted continued growth for Ethereum 
$2,262 in the coming months. Hougan emphasized that the increase in institutional demand for Ethereum has significantly impacted its price. Although Ethereum experienced a dip in the year’s first four months, it has surged over 50% in the past month and gained more than 150% from its lowest point in April.
Ethereum (ETH) Surge
According to Hougan, Ethereum-based exchange-traded products (ETFs) were launched in July 2024. Initially met with limited interest, demand for these products escalated rapidly from mid-May onwards. Since May 15th, over $5 billion has flowed into spot Ethereum ETFs.
Additionally, some companies have started to disclose their strategies for holding Ethereum in their treasuries. Institutions like Bitmine and SharpLink have publicly announced their Ethereum-focused reserves. These developments indicate large-scale Ethereum acquisitions by corporations.
“ETFs and Corporate Treasuries have purchased 2.83 million ETH since May 15, exceeding $10 billion at today’s prices. During the same timeframe, the purchases were 32 times the new supply. This scenario explains the increase in ETH price.”
Ethereum Projections
Hougan anticipates this surge in demand could persist in the upcoming months. The renewed institutional interest and advancements in the stablecoin and tokenization sectors are expected to sustain ETF inflows into Ethereum for the long term.
Hougan also noted that the trend of institutional companies holding Ethereum reserves is likely to accelerate.
“Looking ahead, ETFs and Treasury Companies may acquire $20 billion worth of ETH over the next year. At current prices, this amounts to 5.33 million ETH. The network is expected to produce around 0.80 million ETH in the same period. Thus, demand could be approximately seven times the supply.”
At the time of writing, Ethereum is trading at $3,705, experiencing a 1% loss over the past 24 hours. Experts predict the price will stay on an upward trend in the medium to long term.
Despite the inherent risks associated with investments, the increase in institutional activities and volume in Ethereum is emerging as a significant market driver. Investors are advised to conduct their research and risk analysis. Institutional and individual demand is believed to affect the supply-demand balance, influencing price formation.
