Standard Chartered recently highlighted the undervaluation of Ethereum (ETH) and the companies holding it in their treasuries, despite ETH hitting a record high of $4,955 on August 25th. Geoffrey Kendrick, the head of crypto research at the bank, noted that treasury firms and exchange-traded funds have been accumulating Ethereum at a rapid pace.
Since June, treasury companies have acquired 2.6% of all Ethereum in circulation, while ETFs have added 2.3%, totaling a 4.9% stake. This accumulation rate surpasses the speed at which Bitcoin treasuries and ETFs acquired 2% of the supply in late 2024. Kendrick predicts that this buying spree is just the beginning of a broader accumulation cycle, with treasury firms potentially controlling up to 10% of all ether outstanding in the future.
Companies like BitMINE have publicly announced their goal of owning 5% of Ethereum, making Kendrick’s projection seem achievable. With 7.4% of the supply still available for accumulation, this strong demand for Ethereum could drive prices higher. The increasing role of institutional structures in the crypto market is evident through the alignment of ETF flows with treasury purchases, creating a feedback loop that tightens supply and supports price growth.
Kendrick revised Standard Chartered’s previous forecasts, suggesting that Ethereum could reach $7,500 by the end of the year. He views the recent pullback in price as a great opportunity for investors to enter the market before further inflows.
Despite the price surge, the valuations of companies holding Ethereum have not followed suit. The net asset value multiples of SharpLink and BitMINE, the leading ETH treasury firms, have fallen below those of Strategy, the largest Bitcoin treasury company. Kendrick believes that this discount is unwarranted, as ETH treasuries can generate a 3% staking return, unlike Bitcoin holdings.
Additionally, he highlighted SBET’s plan to buy back shares if its NAV multiple drops below 1.0, providing a solid floor for valuations. The market dynamics surrounding Ethereum and its treasury firms present an interesting investment opportunity for those looking to capitalize on the growing institutional interest in the cryptocurrency space.