Ethereum Treasuries Poised to Own 10% of All ETH Amid Institutional Shift

Standard Chartered predicts Ethereum treasuries could own 10% of all ETH, up from the current 1% in just two months. This is due to Ethereum's yield-generating capabilities and regulatory arbitrage advantages over Bitcoin. Corporate treasuries are buying ETH at a faster pace than Bitcoin ETFs, and the bank forecasts that ETH treasuries could expand tenfold to reach 10% of the total supply.

Standard Chartered predicts that Ethereum (ETH) treasuries could own 10% of all ETH, up from the current 1% in just two months. This significant increase is driven by Ethereum's yield-generating capabilities and regulatory arbitrage advantages over Bitcoin (BTC).

Ethereum's growing appeal among institutional investors is evident in the rapid accumulation of ETH by corporate treasuries. According to a new report from Standard Chartered, corporate buyers have amassed approximately 1.26 million ETH (worth nearly $9 billion) since June, closely matching the pace of purchases by newly launched spot Ethereum ETFs, which added 2 million ETH over the same period [1].

The bank estimates that this figure could expand tenfold, potentially reaching 10% of ETH’s circulating supply in the coming years. Ethereum treasuries are outpacing their Bitcoin counterparts, with BTC treasury holdings standing at around 4.4% of BTC’s total supply [1].

Standard Chartered attributes this trend to several factors. Ethereum's ability to generate passive yield through staking and its utility within decentralized finance (DeFi) make it an attractive option for corporate treasuries. Additionally, regulatory arbitrage, where publicly listed companies are used as proxies for ETH exposure in jurisdictions where direct crypto ownership is restricted, is a significant driver [1].

Major players are already positioning themselves to capitalize on this trend. BitMine Immersion Technologies (BMNR), backed by Peter Thiel, is currently the largest ETH treasury company and aims to hold as much as 5% of the total ETH supply. If successful, this would represent net purchases of around 6 million ETH from current levels [1].

SharpLink Gaming is also actively involved in this acquisition strategy, aiming to accumulate 1 million ETH as part of its new treasury management strategy [2].

This surge in ETH holdings by corporate treasuries is expected to influence market sentiment and shares, echoing the impacts seen previously with Bitcoin-focused strategies. SharpLink’s shares surged by 400% following the announcement of its ETH acquisition strategy, reflecting strong investor confidence in Ethereum-centric treasury management [2].

The broader trend indicates growing institutional adoption of Ethereum, which may drive regulatory evolution and broader market acceptance of digital assets. As more firms follow suit, Ethereum’s influence on market liquidity and governance is poised to expand, shaping the future of digital asset adoption.

References:
[1] https://en.coinotag.com/sharplinks-plan-to-acquire-1-million-ethereum-signals-potential-shifts-in-market-liquidity-and-governance/
[2] https://coincodex.com/article/70776/standard-chartered-predicts-ethereum-treasury-companies-could-own-10-of-eth-supply/