tl;dr
**Ethereum’s Quiet Power Play: How Institutional Buying Could Fuel a $7,500 Surge**
Ethereum (ETH) hit a record $4,955 on August 25, but Standard Chartered’s crypto research head, Geoffrey Kendrick, isn’t celebrating just yet. To him, the price surge is only the opening act of a much bigger story...
**Ethereum’s Quiet Power Play: How Institutional Buying Could Fuel a $7,500 Surge**
Ethereum (ETH) hit a record $4,955 on August 25, but Standard Chartered’s crypto research head, Geoffrey Kendrick, isn’t celebrating just yet. To him, the price surge is only the opening act of a much bigger story: a quiet, institutional-driven accumulation of Ethereum that could push its value to $7,500 by year-end.
**Treasury Firms and ETFs Are Going All-In**
Since June, treasury firms and exchange-traded funds (ETFs) have snatched up nearly 5% of all Ethereum in circulation—a staggering pace that outstrips Bitcoin’s 2% accumulation by treasuries and ETFs in late 2024. Treasury companies alone have claimed 2.6%, while ETFs added 2.3%.
“This is one of the fastest accumulation streaks in crypto history,” Kendrick said, highlighting the growing influence of institutional players. He sees this as the early phase of a broader “accumulation cycle,” with treasury firms potentially controlling 10% of all ether outstanding.
Companies like BitMINE, which publicly aims to own 5% of Ethereum, are already laying the groundwork. If they succeed, 7.4% of the supply would remain in play, creating a tailwind for Ethereum’s price.
**The Feedback Loop: Why Institutions Are Betting Big**
Kendrick argues that the alignment of ETF flows with treasury purchases is creating a self-reinforcing loop. As institutional buyers hoard Ethereum, supply tightens, and prices rise. This dynamic mirrors how stock buybacks can boost a company’s share price by reducing the number of shares outstanding.
The bank has revised its forecasts, now projecting Ethereum could climb to $7,500 by year-end. Kendrick even called the recent price dip a “great entry point” for investors eyeing the next wave of inflows.
**Valuation Gaps: Why Ethereum’s Treasuries Are Undervalued**
Despite the buying frenzy, some Ethereum-holding firms are trading at a discount compared to Bitcoin treasuries. SharpLink and BitMINE, two of the most established ETH treasury companies, have net asset value (NAV) multiples below those of Strategy, the largest Bitcoin treasury firm.
Kendrick says this discount is unjustified. Unlike Bitcoin, which generates no income for treasuries, Ethereum’s staking rewards offer a 3% return—money that flows directly to the companies holding it.
He also pointed to SBET’s recent plan to repurchase shares if its NAV multiple drops below 1.0, a move that could act as a “hard floor” for valuations. This safety net adds another layer of support for Ethereum’s treasuries.
**What’s Next?**
With institutional demand accelerating and valuation gaps narrowing, Ethereum’s story is far from over. As Kendrick sees it, the market is still in the early innings of a cycle that could see treasuries and ETFs control 10% of the supply.
For investors, the question isn’t whether Ethereum will rise—it’s whether they’re ready to ride the wave.
*What do you think? Is Ethereum’s next surge just around the corner, or are we still waiting for the real fireworks?*