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Standard Chartered Bank said that even though the second-largest cryptocurrency Ethereum soared to an all-time high of $4,955 on August 25, the valuation of Ethereum and the companies holding it in their treasuries remain undervalued. Geoffrey Kendrick, the bank's head of cryptocurrency research, said that since June, treasuries and ETFs have absorbed nearly 5% of the circulating Ethereum, with treasuries buying 2.6% and ETFs increasing their holdings by 2.3%. The combined 4.9% holdings of the two represent one of the fastest accumulation cycles in the history of cryptocurrency, exceeding the rate at which BTC treasuries and ETFs will increase their holdings by 2% of the circulating supply by the end of 2024. Kendrick said the recent surge in accumulation marks the early stages of a broader accumulation cycle. In a July report, he predicted that treasury firms could eventually control 10% of all circulating ether. Kendrick believes that the 5% holding target seems achievable, given that companies such as BitMINE have publicly stated it is a target. He noted that this means there is still 7.4% of the circulating supply to be accumulated, which will provide strong support for the price of Ethereum. The rapid pace of purchases highlights the growing role of institutional investors in the cryptocurrency market. Kendrick said the synergy between ETF flows and treasury purchases creates a "feedback loop" that could further tighten supply and drive prices higher. Kendrick raised the bank's previous forecast, saying that Ethereum could climb to $7,500 by the end of the year. He also said that the current pullback is an "excellent entry point" for investors to position for subsequent capital inflows. While buying pressure has pushed up the price of Ethereum, the valuations of companies holding Ethereum have moved in the opposite direction. SharpLink and BitMINE are the two most mature Ethereum treasury companies, and their net asset value (NAV) multiples are lower than that of Strategy, the largest Bitcoin treasury company. Kendrick said the valuation discount is unreasonable because Ethereum Treasury can earn 3% staking returns, while the Bitcoin held by Strategy cannot generate such returns. He also mentioned that SBET plans to repurchase shares in the near term when its NAV multiple falls below 1.0, saying this sets a “solid floor” for the Ethereum treasury company’s valuation.Standard Chartered Bank said that even though the second-largest cryptocurrency Ethereum soared to an all-time high of $4,955 on August 25, the valuation of Ethereum and the companies holding it in their treasuries remain undervalued. Geoffrey Kendrick, the bank's head of cryptocurrency research, said that since June, treasuries and ETFs have absorbed nearly 5% of the circulating Ethereum, with treasuries buying 2.6% and ETFs increasing their holdings by 2.3%. The combined 4.9% holdings of the two represent one of the fastest accumulation cycles in the history of cryptocurrency, exceeding the rate at which BTC treasuries and ETFs will increase their holdings by 2% of the circulating supply by the end of 2024. Kendrick said the recent surge in accumulation marks the early stages of a broader accumulation cycle. In a July report, he predicted that treasury firms could eventually control 10% of all circulating ether. Kendrick believes that the 5% holding target seems achievable, given that companies such as BitMINE have publicly stated it is a target. He noted that this means there is still 7.4% of the circulating supply to be accumulated, which will provide strong support for the price of Ethereum. The rapid pace of purchases highlights the growing role of institutional investors in the cryptocurrency market. Kendrick said the synergy between ETF flows and treasury purchases creates a "feedback loop" that could further tighten supply and drive prices higher. Kendrick raised the bank's previous forecast, saying that Ethereum could climb to $7,500 by the end of the year. He also said that the current pullback is an "excellent entry point" for investors to position for subsequent capital inflows. While buying pressure has pushed up the price of Ethereum, the valuations of companies holding Ethereum have moved in the opposite direction. SharpLink and BitMINE are the two most mature Ethereum treasury companies, and their net asset value (NAV) multiples are lower than that of Strategy, the largest Bitcoin treasury company. Kendrick said the valuation discount is unreasonable because Ethereum Treasury can earn 3% staking returns, while the Bitcoin held by Strategy cannot generate such returns. He also mentioned that SBET plans to repurchase shares in the near term when its NAV multiple falls below 1.0, saying this sets a “solid floor” for the Ethereum treasury company’s valuation.

Standard Chartered Bank: Why do we think ETH will reach $7,500 by the end of the year?

2025/08/27 14:00

Geoffrey Kendrick, the bank's head of cryptocurrency research, said that since June, treasuries and ETFs have absorbed nearly 5% of the circulating Ethereum, with treasuries buying 2.6% and ETFs increasing their holdings by 2.3%.

The combined 4.9% holdings of the two represent one of the fastest accumulation cycles in the history of cryptocurrency, exceeding the rate at which BTC treasuries and ETFs will increase their holdings by 2% of the circulating supply by the end of 2024.

Kendrick said the recent surge in accumulation marks the early stages of a broader accumulation cycle. In a July report, he predicted that treasury firms could eventually control 10% of all circulating ether.

Kendrick believes that the 5% holding target seems achievable, given that companies such as BitMINE have publicly stated it is a target. He noted that this means there is still 7.4% of the circulating supply to be accumulated, which will provide strong support for the price of Ethereum.

The rapid pace of purchases highlights the growing role of institutional investors in the cryptocurrency market. Kendrick said the synergy between ETF flows and treasury purchases creates a "feedback loop" that could further tighten supply and drive prices higher.

Kendrick raised the bank's previous forecast, saying that Ethereum could climb to $7,500 by the end of the year. He also said that the current pullback is an "excellent entry point" for investors to position for subsequent capital inflows.

While buying pressure has pushed up the price of Ethereum, the valuations of companies holding Ethereum have moved in the opposite direction.

SharpLink and BitMINE are the two most mature Ethereum treasury companies, and their net asset value (NAV) multiples are lower than that of Strategy, the largest Bitcoin treasury company.

Kendrick said the valuation discount is unreasonable because Ethereum Treasury can earn 3% staking returns, while the Bitcoin held by Strategy cannot generate such returns.

He also mentioned that SBET plans to repurchase shares in the near term when its NAV multiple falls below 1.0, saying this sets a “solid floor” for the Ethereum treasury company’s valuation.

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