Ethereum News Today: Ethereum Treasury Firms Near 2% Supply Standard Chartered Forecasts 10% Ownership By 2025

Ethereum treasury companies have rapidly accumulated 1% of all circulating ETH in just two months, with holdings nearing $9 billion and approaching 2% of the total supply, according to Strategic ETH Reserve [1]. This surge has prompted Standard Chartered’s global head of digital assets research, Geoff Kendrick, to forecast that these firms could grow their Ethereum holdings tenfold, eventually owning 10% of all ETH [1]. Such a scenario, he argues, could drive Ethereum’s price above $4,000, aligning with the firm’s end-2025 projection [1].

The growth of Ethereum treasury companies has outpaced their Bitcoin counterparts, with BitMine and SharpLink leading the charge. BitMine, backed by Peter Thiel, has amassed over $2 billion in ETH, while SharpLink holds $1.3 billion in the asset [1]. Kendrick attributes this institutional interest to Ethereum’s staking rewards and its utility in decentralized finance (DeFi), which offer advantages over Bitcoin’s limited functionality [1]. However, the same attributes cited as strengths—such as the time required to unstake ETH and the risks of managing smart contracts in DeFi—are highlighted as potential challenges by analysts at Bernstein [1].

Despite these risks, Kendrick emphasizes Ethereum’s potential for regulatory arbitrage, suggesting that companies willing to navigate the complexities of smart contract management and staking could benefit significantly from Ethereum’s unique features [1]. This contrasts with Bitcoin treasury companies, which operate in a more straightforward, albeit less functional, environment [1].

As of the latest data, Ethereum trades at $3,861.40, having gained 0.5% in the past 24 hours. The cryptocurrency’s 24-hour trading volume reached $112 billion, reflecting renewed activity in derivatives markets [1]. While Bitcoin and Ethereum have seen their price rallies pause, the momentum in Ethereum treasury acquisitions remains robust, with Standard Chartered’s analysis underscoring a pivotal shift in institutional strategy toward Ethereum’s utility-driven ecosystem.

The implications of these developments extend beyond price forecasts. A 10% ownership stake by treasury companies would represent a structural change in Ethereum’s supply dynamics, potentially influencing market sentiment and long-term value propositions. For now, the balance between regulatory risks and DeFi opportunities remains central to the growth trajectory of Ethereum’s institutional adoption.

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[1] title: "Ethereum Treausry 10 Percent All ETH Standard Chartered"

url: https://decrypt.co/332281/ethereum-treausry-10-percent-all-eth-standard-chartered