Ethereum News Today: Institutional Frenzy: Why Ethereum's 10% Supply Grab Signals a New Bull Case

Geoffrey Kendrick of Standard Chartered has reiterated his bullish stance on Ethereum, asserting that the asset and its associated treasury companies remain undervalued. His analysis highlights significant institutional interest, with Ethereum treasury firms and ETFs collectively acquiring nearly 5% of the circulating supply since June, a pace far outpacing Bitcoin’s accumulation rates. This surge in demand has driven Ethereum to new record highs, with prices reaching $4,953 on August 23, only to pull back slightly in the following days. Despite the recent dip, Kendrick maintains a $7,500 price target for Ethereum by the end of 2025, viewing the decline as a favorable entry point for investors [7].

The buying pressure has been particularly pronounced among Ethereum treasury companies. BitMine, for instance, has expanded its Ethereum holdings to 1.71 million tokens, valued at approximately $8.8 billion, making it the second-largest crypto treasury globally after MicroStrategy. Over the past week alone, BitMine added 190,500 ETH, significantly increasing its net asset value (NAV) per share from $22.84 to $39.84. Chairman Tom Lee emphasized that the firm remains committed to acquiring up to 5% of the total Ethereum supply, with a $20 billion capital-raising plan in place to support further purchases [1]. Other firms, including Sharplink Gaming, have also made aggressive moves, with its holdings reaching $3.3 billion worth of ETH [6].

Ethereum ETFs have played a pivotal role in this accumulation trend. Despite recent market turbulence, these funds have continued to attract strong inflows. On August 25, Ethereum ETFs recorded $443.91 million in daily net inflows, marking a three-day streak of capital inflows that now total over $1 billion. This performance contrasts with Bitcoin ETFs, which have faced significant outflows. Fidelity’s FETH and Purpose’s Ether ETFs have particularly stood out, posting strong weekly gains and demonstrating the growing preference for Ethereum among institutional investors [5]. These inflows suggest that Ethereum’s institutional adoption is accelerating, supported by regulatory clarity and the growing utility of the Ethereum network in decentralized finance (DeFi) and staking.

Kendrick also points to valuation metrics as a key indicator of Ethereum’s undervaluation. He noted that Ethereum treasury companies like Sharplink Gaming and BitMine trade at multiples below those of Bitcoin-focused firms like MicroStrategy, despite offering a 3% staking yield. This yield advantage, coupled with potential stock buybacks if net asset values fall below market prices, provides a natural floor for valuations. For example, Sharplink Gaming has announced that it will repurchase shares if its NAV multiple drops below 1.0, a move that could stabilize its stock price and enhance returns for investors [7]. These mechanisms are absent in Bitcoin treasuries, which rely solely on price appreciation for returns.

The broader macroeconomic environment further supports Ethereum’s potential. The Federal Reserve’s dovish signals at Jackson Hole have triggered a risk-on sentiment in markets, with Ethereum outperforming Bitcoin amid the recent volatility. Institutional investors are increasingly viewing Ethereum as a high-beta asset that benefits from easier monetary policy. Meanwhile, regulatory progress, including the GENIUS Act and SEC initiatives like Project Crypto, is creating a more favorable environment for crypto adoption. These factors, combined with Ethereum’s structural role in powering stablecoin infrastructure and DeFi protocols, are reinforcing its position as the leading digital asset for institutional investment [4].

Kendrick’s forecast of Ethereum reaching $7,500 by year-end is based on the continued momentum of treasury and ETF buying, combined with the asset’s unique advantages over Bitcoin. With Ethereum treasury companies projected to eventually control 10% of the supply and ETF inflows showing no signs of slowing, the pressure on the asset’s supply side is expected to drive further appreciation. Additionally, the potential for Ethereum to serve as a foundational layer for future financial infrastructure, including AI integration on blockchain, could unlock long-term value. As institutional adoption deepens and Ethereum’s utility expands, the market may continue to price in these transformative possibilities, reinforcing the case for a significant upside in the near term [6].

Source: [1] BitMine Ethereum Stash Nears $8 Billion After ETH Hits All-Time High (https://finance.yahoo.com/news/bitmine-ethereum-stash-nears-8-161713262.html) [2] BitMine Immersion (BMNR) Reigns as the 1 ETH Treasury in the World (https://www.prnewswire.com/news-releases/bitmine-immersion-bmnr-reigns-as-the-1-eth-treasury-in-the-world-2nd-largest-crypto-treasury-globally-and-the-20th-most-liquid-us-stock-trading-2-8-billion-per-day-on-average-302537388.html) [3] Ether Analysis (ETH): Buy the Dip, Says Geoff Kendrick (https://www.coindesk.com/markets/2025/08/26/ether-and-eth-treasury-companies-look-undervalued-after-plunge-standard-chartered) [4] Ethereum ETFs Surge as Fed Easing Signals Fuel Breakout Momentum (https://www.theglobeandmail.com/investing/markets/indices/JX/pressreleases/34386329/ethereum-etfs-surge-as-fed-easing-signals-fuel-breakout-momentum/) [5] Ethereum ETF Inflows Intact Despite Crypto Market Turmoil (https://www.ccn.com/news/crypto/ethereum-etf-intact-crypto-market-turmoil/) [6] Ethereum Price Will Hit $7500 by Year-End, Says Standard Chartered (https://www.dlnews.com/articles/markets/eth-price-to-7500-in-2025-says-standard-chartered/) [7] Standard Chartered Calls Ethereum and ETH Treasury Companies Undervalued (https://www.theblock.co/post/368313/standard-chartered-calls-ethereum-and-eth-treasury-companies-cheap-at-current-levels)