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Standard Chartered said Ethereum (ETH) and the companies holding it in their treasuries remain undervalued, even as the second-largest crypto surged to a record $4,955 on Aug. 25.
Geoffrey Kendrick, the bank’s head of crypto research, said treasury firms and exchange-traded funds have absorbed nearly 5% of all Ethereum in circulation since June. Treasury companies bought 2.6%, while ETFs added 2.3%.
Combined, that 4.9% stake represents one of the fastest accumulation streaks in crypto history, surpassing the speed at which Bitcoin (BTC) treasuries and ETFs acquired 2% of supply in late 2024.
Building toward 10%
Kendrick said the recent buying spree marks the early phase of a broader accumulation cycle. In a July note, he projected that treasury firms could eventually control 10% of all ether outstanding.
Kendrick argued that with companies such as BitMINE publicly targeting 5% ownership, the goal appears attainable. He noted that this would leave another 7.4% of supply still in play, creating strong tailwinds for Ethereum’s price.
The sharp pace of accumulation emphasizes the growing role of institutional structures in crypto markets. Kendrick said the alignment of ETF flows with treasury purchases highlights a feedback loop that could tighten supply further and support higher prices.
Kendrick revised the lender’s previous forecasts and said Ethereum could climb to $7,500 by year-end. He also called the latest pullback a “great entry point” for investors positioning ahead of further inflows.
Valuation gaps
While buying pressure has lifted prices, valuations of ether-holding firms have moved in the opposite direction.
Net asset value (NAV) multiples for SharpLink and BitMINE, the two most established ETH treasury companies, have dropped below those of Strategy, the largest Bitcoin treasury firm.
Kendrick said the discount is unjustified given that ETH treasuries can capture a 3% staking return, while Strategy generates no such income on its Bitcoin stash.
He also pointed to SBET’s recent plan to repurchase shares if its NAV multiple falls below 1.0, saying that creates a hard floor for valuations.
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