Standard Chartered has issued a compelling analysis, asserting that Ethereum (ETH) and companies holding it in their treasuries are significantly undervalued. Despite a remarkable surge in its market price, the bank’s head of crypto research highlights a disconnect in valuation, projecting a substantial price increase for the digital asset by year-end.
Rapid Institutional Accumulation and Ambitious Projections
The report reveals an unprecedented pace of Ethereum accumulation by institutional players. Since June, corporate treasury firms and exchange-traded funds (ETFs) have collectively absorbed nearly 5% of the total ETH supply, with treasury companies acquiring 2.6% and ETFs adding 2.3%. This aggressive buying spree is noted as one of the fastest in crypto history, surpassing even Bitcoin’s institutional accumulation in late 2024. Geoffrey Kendrick, Standard Chartered's head of crypto research, anticipates this trend to continue, projecting that treasury firms could eventually control 10% of all outstanding Ether, thereby creating significant tailwinds for its price. Consequently, Standard Chartered has revised its year-end forecast for Ethereum to $7,500, identifying recent market pullbacks as opportune entry points for investors.
Addressing Unjustified Valuation Discrepancies
Despite the strong buying pressure and positive price outlook for ETH, a striking disparity exists in the valuation of companies holding Ethereum in their treasuries. Firms like SharpLink and BitMINE, key ETH treasury companies, currently trade at net asset value (NAV) multiples below those of leading Bitcoin treasury firms such as Strategy. Standard Chartered argues this discount is unwarranted, especially given that ETH treasuries can generate an approximately 3% staking return on their holdings, a revenue stream absent for Bitcoin treasury firms. Furthermore, the bank points to SBET's strategic plan to repurchase shares if its NAV multiple falls below 1.0, a move that could establish a hard floor for valuations and further underscore the current undervaluation in the sector.
