Standard Chartered said that Ethereum (ETH) and the companies that hold it in their treasury remain undervalued, even when the second largest crypto on 25 August $ 4,955 rose to a record of $ 4,955.
Geoffrey Kendrick, the head of the bank of Crypto Research, said that Treasury companies and listed funds have absorbed almost 5% of all Ethereum in circulation since June. Treasury companies bought 2.6%, while ETFs added 2.3%.
Combined, that interest of 4.9% represents one of the fastest accumulation stripes in the crypto history, which surpasses the speed with which Bitcoin (BTC) treasuries and ETFs have obtained 2% of the offer at the end of 2024.
Build to 10%
Kendrick said that the recent sale Spree marks the early phase of a wider accumulation cycle. In a note in July he projected that Treasury companies could eventually check 10% of all excellent ether.
Kendrick argued that with companies such as Bitmine focused publicly on 5% ownership, the goal seems feasible. He noted that this is another 7.4% of the offer that would still be in the game, creating a strong steel wind for the price of Ethereum.
The sharp pace of accumulation emphasizes the growing role of institutional structures in cryptomarkets. Kendrick said that the alignment of ETF flows with Treasury purchases highlight a Feedbackklus that could further sharpen the offer and support higher prices.
Kendrick revise the earlier predictions of the lender and said that Ethereum could rise to $ 7,500 by the end of the year. He also called the latest pullback a “great access point” for investors who position further inflow before further inflow.
Valuation hiases
Although buying pressure has increased the prices, valuations of ether-retaining companies have been moved in the opposite direction.
Net Activea value (NAV) multiplink and Bitmine, the two most established ETH Treasury companies, have fallen under that of strategy, the largest Bitcoin Treasury company.
Kendrick said the discount is unjustified, since ETH Treasuries can achieve a return of 3%, while the strategy does not generate such an income on its Bitcoin stock.
He also pointed to the recent Sbet plan to buy back shares when his NAV -more under 1.0 drops, and says that this creates a hard floor for valuations.
