Ethereum (ETH) Set for a Breakout in 2025 as Tokenisation Market Heats Up

Despite the hesitation from traders to consolidate above the resistance level, Bitwise Senior Investment Strategist Juan Leon believes that Ether is set for a breakout in 2025.

Fresh out of the oven, hot off the presses – Ethereum price analysis is here!

After breaching the coveted US $4k (AU $6.3k) milestone a couple of days ago, Ether quickly fell below the resistance level as investors hesitated to consolidate.

However, despite the setback, Bitwise Senior Investment Strategist Juan Leon remains bullish on ETH, predicting a breakout in 2025.

According to Leon, here’s what’s driving investor interest in Ether right now.

Key points:

Volume has surged into spot Ether ETFs over the past ten days, totalling US $2 billion.

While the coin’s price action has been relatively dull, there is a clear push from institutional investors to gain exposure to Ethereum.

Tokenisation is expected to capitalise on a trillion-dollar market, and Ethereum is well-positioned to benefit.

Investors Piling Into Spot Ether ETFs

Leon’s note to investors begins by highlighting a recent burst in volume for Ethereum, specifically in spot Ether ETFs.

Over the past ten trading days, these ETFs have seen a total of US $2 billion flow into the funds.

For context, this is eight times more than the market experienced in the four months prior to December.

Ether’s Price Action, Institutional Interest Setting Up ETH for 2025 Breakout

This coin’s price action in the time frame hasn’t been particularly compelling, with Ether falling well shy of its 2021 all-time high of US $4.8k (AU $7.6k).

But there is a clear push from institutional investors to gain at least a little exposure to the project heading into 2025.

Tokenised Funds Can Capture Trillion-Dollar MArket: Will Ethereum be the Network to Capitalise?

According to Leon, tokenisation is the reason why money is once again flowing into Ethereum.

The sector has made a big push in the past couple of years, with huge asset managers like BlackRock entering the market with their tokenised Treasury fund, BUIDL.

Bitwise believes this is just the beginning.

“As the demand for tokenised funds grows, the network that will stand to benefit the most is the one that can provide the greatest liquidity, security, and efficiency for these tokenised applications,” said Leon.

“In this regard, Ethereum has positioned itself as the most battle-tested smart contract platform in the industry, already owning 81% of the tokenisation market share.”

And if tokenisation truly takes off in 2025, which many believe it will, there’s a lot of money ready to flow onto the blockchain, and according to Leon, Ethereum is set to benefit the most.