Ethereum (ETH) has surged 160% since April 2025 as institutional demand dramatically outpaces new supply, with Exchange-Traded Products (ETPs) and corporate treasuries purchasing 2.83 million ETH since mid-May. According to Bitwise CIO Matt Hougan, this represents over $10 billion at current prices and dwarfs net new supply by 32 times, creating significant upward pressure on ETH's valuation.
Public companies including SharpLink Gaming, BitMine, and Bit Digital have executed major acquisitions, collectively holding over 840,000 ETH. Strategic Ethereum Reserve data reveals institutional holdings now exceed $7 billion, equivalent to 1.87 million ETH or 1.55% of Ethereum's total supply—a milestone signaling deepening institutional conviction. This accumulation pattern mirrors Bitcoin's 2024 ETF-driven surge, suggesting potential for sustained price strength.
The institutional rush stems from Ethereum's transition to Proof-of-Stake, enabling staking yields; its foundational role in DeFi/NFT ecosystems; regulatory clarity progress; and portfolio diversification beyond Bitcoin. While boosting market legitimacy and liquidity, this trend also raises centralization concerns and regulatory scrutiny risks. Analysts project continued capital inflows could catalyze Ethereum ETF approvals and further stabilize ETH's market position despite scalability challenges.