Ethereum, continuing to rise due to demand shock, predicts Bitwise CIO

## What are the factors behind the rise of Ethereum?

Matt Hogan, the Chief Investment Officer (CIO) of Bitwise, analyzed on the 23rd the reasons why the price of the cryptocurrency Ethereum (ETH) is rising. He predicts that it will continue to rise over the next few months.

Ethereum has risen more than 50% in the past month in dollar terms, and more than 150% from the low in April.

Mr. Hogan points out that the demand from companies adopting Ethereum ETFs (exchange-traded funds) and Ethereum financial strategies is behind the rise.

What is an ETF?

Exchange Traded Fund (ETF) is a type of index fund.

In the United States, the Ethereum spot ETF was scheduled to begin trading in July 2024. However, it was not very active in terms of inflows, with approximately $2.5 billion (about 367 billion yen) in inflows into the Ethereum ETF by May 15, 2025, and the amount of Ethereum acquired from the market was limited to 660,000 ETH.

During this period, 543,000 ETH were newly issued on the Ethereum network. Mr. Hogan stated that this new issuance was close to the demand of 660,000 ETH from ETFs, and that demand and supply were balanced, resulting in stable prices.

At this time, it continued that Ethereum financial strategy companies had hardly emerged.

Mr. Hogan pointed out that the situation changed dramatically in mid-May. Since May 15, more than $5 billion (approximately 733 billion yen) has flowed into Ethereum spot ETFs, and companies such as Bitmine and Sharplink have announced their Ethereum treasury strategies.

According to estimates by Bitwise, since the 15th, ETF and financial asset companies have purchased a total of 2.83 million ETH, which exceeds 10 billion dollars (approximately 1.5 trillion yen) at the current price. Furthermore, this amount is equivalent to 32 times the net new supply of Ethereum during the same period.

Source: Mr. Hogan's X post

Mr. Hogan stated that considering these circumstances, it is only natural that the Ethereum price surged. Furthermore, he expressed the view that the rise will continue in the future.

The reason is that investors are currently significantly underweighting Ethereum compared to Bitcoin. It is noted that the market capitalization of Ethereum is about 19% of Bitcoin, but the asset size of Ethereum ETFs remains below 12% of Bitcoin ETFs.

On the other hand, due to the growing interest in stablecoins and the tokenization of real-world assets (RWA), it is expected that the inflow into Ethereum investment products will remain steady over the long term.

Furthermore, it was noted that there are signs of an acceleration in the trends of companies involved in Ethereum financial strategies. At present, the stocks of these companies are trading at a premium price that exceeds the value of the cryptocurrencies they hold, leading to the speculation that the trend will continue.

Mr. Hogan stated that ETF and financial strategy companies may purchase a total of 5.33 million ETH (equivalent to 2.9 trillion yen) over the next year.

Ethereum (ETH) News and Prices

Thorough explanation of investment benefits and risks

a.t3-set { text-decoration: none !important; }