Ethereum News Today: Ethereum's Institutional Grab Could Push Price to $7,500 by 2025

Ethereum continues to attract institutional buying and staking interest despite reaching record highs, with Standard Chartered analysts suggesting the asset remains undervalued. According to Geoffrey Kendrick, head of digital assets strategy at the UK-based bank, Ethereum’s price could climb to $7,500 by the end of 2025. This forecast is based on the rapid accumulation of Ether by treasury companies and exchange-traded funds (ETFs), which have absorbed nearly 5% of the circulating supply since June 2024. This is more than double the fastest accumulation rate for Bitcoin during the same period. At the current price of around $4,500, Ethereum is positioned for further gains as demand from institutional investors continues to surge.

The growing influence of Ethereum treasury companies is central to this trend. Firms such as BitMine Immersion Technologies and SharpLink Gaming, the latter led by Ethereum co-founder Joe Lubin, have significantly increased their ETH holdings. SharpLink recently added 56,533 ETH to its balance sheet, raising its total holdings to nearly 800,000 ETH, valued at approximately $3.6 billion. These companies are not only accumulating Ether but also offering staking rewards, which provide a steady return of around 3%, a feature that Bitcoin treasury companies lack. Kendrick argues this advantage, along with the potential for Ethereum to capture a larger market share, supports the view that the asset is still undervalued.

Corporate Ethereum holders have been particularly aggressive in their accumulation strategy. BitMine, for instance, aims to control 5% of the total supply, having already added $900 million in ETH in a single week. With Ethereum treasury companies owning about 3.5% of the supply currently, Kendrick believes the 10% target is well within reach by year-end. The continued appetite for Ethereum among institutional investors suggests that supply constraints could tighten further, potentially driving the price higher.

Ethereum’s performance has also outpaced Bitcoin in recent months. Year-to-date, Ethereum has gained 32.6%, compared to Bitcoin’s 17.3%. ETF inflows into Ethereum products have also exceeded those for Bitcoin, with $444 million flowing into Ethereum ETFs compared to $219 million for Bitcoin. This trend reflects a broader shift in investor preference toward Ethereum’s more versatile use cases, including decentralized finance (DeFi), tokenization, and non-fungible tokens (NFTs), compared to Bitcoin’s role as a store of value.

Analysts highlight additional structural advantages for Ethereum treasury companies. Many of these firms trade at a discount to their net asset value (NAV), creating an attractive entry point for investors. For example, Sharplink has announced automatic buybacks if its stock falls below NAV, establishing a potential floor for its valuation. This mechanism contrasts sharply with the challenges faced by many Bitcoin treasury companies, which have struggled with similar valuation issues. As Ethereum’s institutional adoption accelerates, these structural advantages are expected to reinforce the asset’s long-term investment appeal.

The growing adoption of Ethereum is also influencing global financial strategies. European officials are now considering whether to issue a digital euro on public blockchains like Ethereum or Solana, a shift that could expand the euro’s reach beyond traditional banking systems. Proponents argue that deploying a digital euro on a public blockchain would provide instant access to decentralized finance (DeFi) and cross-border payment networks. However, concerns around privacy, governance, and banking stability remain significant hurdles. Despite these challenges, the rapid development of Ethereum’s ecosystem suggests that its role in shaping the future of global finance is only just beginning.

Source: [1] Ethereum price to $7,500 in 2025, says Standard Chartered (https://www.dlnews.com/articles/markets/eth-price-to-7500-in-2025-says-standard-chartered/) [2] Joe Lubin's SharpLink Boosts ETH Holdings to Nearly 800K (https://finance.yahoo.com/news/joe-lubins-sharplink-boosts-eth-140919587.html) [3] Ethereum Treasury Companies Called 'Undervalued' by Standard Chartered (https://coinmarketcap.com/academy/article/ethereum-treasury-companies-called-undervalued-by-standard-chartered) [4] Ethereum Price in Bitcoin (https://www.coingecko.com/en/coins/ethereum/btc) [5] Neither Apple nor Bitcoin Reached 500 Billion as Fast as Ethereum (https://www.cointribune.com/en/neither-apple-nor-bitcoin-reached-500-billion-as-fast-as-ethereum/) [6] What a Digital Euro on Ethereum or Solana Means for Global Finance (https://decrypt.co/336892/digital-euro-ethereum-solana-europe-monetary-sovereignty) [7] Ethereum to US Dollar (https://www.investing.com/crypto/ethereum/eth-usd)