Standard Chartered’s Kendrick Says Ethereum and Treasury Firms Are Undervalued

Highlights:

• Standard Chartered reported that Ethereum treasury firms and ETFs captured 4.9% of supply in three months. 
• The analyst expects that treasury firms could eventually hold 10% of Ethereum’s circulating supply.
• DAT firms are undervalued despite 3% staking yield, offering stronger returns than Ethereum ETFs.

In emailed remarks Tuesday, Geoffrey Kendrick, Standard Chartered’s head of digital assets research, said Ethereum and firms holding it on their balance sheets remain significantly undervalued. He said digital asset treasury (DAT) firms have purchased 2.6% of all Ethereum currently in circulation since June. At the same time, spot Ethereum exchange-traded funds (ETFs) added another 2.3% during the same period. 

In under three months, 4.9% of Ethereum’s entire supply has already been taken up. This accumulation rate is one of the fastest in crypto history and highlights strong institutional demand for ETH. This buying activity helped Ethereum reach a new all-time high of $4,955 on August 24.

Treasury Firms Could Control 10% of Supply

Kendrick said the recent surge in buying represents the early stage of a wider accumulation cycle. In a July note, he projected that treasury firms could eventually control 10% of ETH’s circulating supply, which is 121,009,455 ETH at the time of writing, per Ultrasound Money data. He added that even with such large holdings, a significant amount of Ethereum would still remain in circulation, helping to support price strength.

Kendrick highlighted that the fast accumulation shows how institutional players are playing a bigger role in crypto markets. He also noted that Ethereum ETF flows aligning with treasury purchases form a feedback loop, which could further reduce supply and boost prices.

Ethereum Treasury Firms Trade at Lower mNAV

Kendrick noted that Ethereum treasury companies are now trading at reduced net asset value (mNAV) multiples. BitMine and SharpLink Gaming now show lower mNAV compared to the Bitcoin-based firm Strategy. This means investors are valuing these Ethereum firms less compared to their actual crypto holdings. “Given that the ETH treasury companies are able to capture ETH’s 3% staking yield, I see no reason for the NAV multiples to be below MSTR’s multiple (which captures no such staking yield),” Kendrick said.

Kendrick pointed out that SharpLink Gaming (SBET) recently announced it would buy back its own shares if its NAV multiple drops below 1.0. He explained that such a move creates a “hard floor” for valuations, helping protect the company’s stock from falling too much. Kendrick said in a note earlier in the month that Ethereum DAT companies are becoming “very investable.” Unlike U.S. spot ETFs, which are limited to only holding Ethereum, DAT firms can stake their ETH and participate in decentralized finance. Kendrick said this ability to earn extra returns makes them a far stronger option for investors.

Kendrick Says Ethereum Dip Offers Strong Buying Opportunity

With Ethereum trading near $4,530, Kendrick called the recent sell-off “a great entry point.” He also reiterated his earlier forecast, setting Ethereum targets at $7,500 for 2025 and $25,000 for 2028. He also raised his Bitcoin forecast to $135K by Sept. 30 and $200K by year-end, with a $500K 2028 target. By 2028, Kendrick forecasts BNB at $2,775, Avalanche (AVAX) at $250, and XRP at $12.50. He also predicts rapid stablecoin expansion, with supply nearing $2 trillion in the next four years.

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