Key Takeaways:
- Ether treasury firms have acquired 2.6% of the total ether supply since June, alongside another 2.3% from ETH ETFs, culminating in a combined acquisition of 4.9% of all ether supply, according to Geoff Kendrick at Standard Chartered.
- Kendrick estimates that ether could reach $7,500 by year-end, viewing the recent price dip as a favorable opportunity for investment.
- The market valuations of ether treasury companies such as Sharplink Gaming and Bitmine Immersion remain low despite their ability to generate a 3% staking yield from ETH.
In a recent assessment, Standard Chartered’s Kendrick asserted, “Ether (ETH) and the ETH treasury companies are cheap at today’s levels.”
Market Performance
Kendrick noted that since early June, treasury firms have accounted for 2.6% of total ETH acquisitions, while ETFs contributed an additional 2.3%. This influx reflects a significant potential for treasury firms to own up to 10% of ETH in circulation, a forecast Kendrick supports.
He emphasized the $4,955 peak that ether reached on August 24, recognizing buyers’ activity as merely beginning, despite the heightened market volatility.
Moreover, Kendrick predicts that the ongoing valuation adjustments for ether treasury companies will result in normalized multiples against established firms like Michael Saylor’s Strategy (MSTR), despite its lack of staking yield participation.
ETF Investment Trends
The segment observed robust inflows of around $444 million into ETH ETFs, primarily driven by BlackRock’s iShares Ethereum Trust, which alone drew in $315 million.
Kendrick added, “The SBET announcement reinforces a solid valuation for ether treasury multiples, assisting in stabilizing the market complexion.”
Read more about the market outlook in the entire article on CoinDesk.
