Ethereum News Today: Treasury Firms Buy 1% of Ethereum in Two Months, Could Control 10% Supply

Corporate treasury firms have significantly increased their Ethereum holdings in recent months, with Standard Chartered forecasting that these entities could control up to 10% of the total Ethereum supply [1]. According to the bank's report, treasury companies have purchased 1% of all ETH within just two months, totaling $1.26 million in Ethereum. This acquisition pace matches the amount of ETH bought by exchange-traded funds (ETFs) in the same period, marking the strongest ETF buying streak on record [1].

Standard Chartered analysts suggest that this surge in institutional Ethereum buying is only the beginning. The report estimates that ETH treasury holdings could expand tenfold, potentially reaching 10% of the total supply. Currently, Bitcoin-focused treasury firms hold around 4.4% of all BTC, but Ethereum's unique features are accelerating its adoption among corporate investors [1].

Ethereum's strategic advantages over Bitcoin include staking rewards of approximately 3% and access to decentralized finance (DeFi) platforms. These features are inaccessible to ETFs, particularly in the United States, giving Ethereum an edge in the institutional space. The Ethereum-to-Bitcoin price ratio has risen from 0.018 in April to 0.032 by late July, reflecting growing interest and activity in Ethereum treasuries [1].

Regulatory arbitrage is another factor driving corporate Ethereum adoption. In jurisdictions where direct ETH access is restricted, publicly traded companies act as intermediaries, holding ETH to provide indirect exposure to shareholders. This structure often leads to these companies trading at a premium to their net asset value, further stimulating demand for Ethereum treasury firms [1].

Among the leading firms, BitMine, backed by Peter Thiel, holds over $2 billion in Ethereum and aims to accumulate up to 5% of the total ETH supply. SharpLink Gaming, ranked second, recently added 77,210 ETH to its reserves in a single transaction, exceeding the total ETH issuance of the previous month [1]. Other notable players include BTCS, GameSquare Holdings, and The Ether Machine.

Analysts anticipate more companies will follow suit, leveraging Ethereum's utility, staking yields, and diverse use cases. If the current buying trend continues, corporate entities could soon control a substantial portion of the Ethereum supply [1].

Source: [1] Ethereum Holdings by Treasury Companies Could Reach 10%, Says Standard Chartered (https://cryptonewsland.com/ethereum-holdings-by-treasury-companies-could-reach-10-says-standard-chartered/)