Ether Treasury Companies to Eventually Own 10% of Supply: Standard Chartered
Standard Chartered’s recent report highlights a significant surge in corporate treasury participation in Ether (ETH), with institutional holdings now reaching 1% of its circulating supply. This represents a substantial increase and signals a potential paradigm shift in institutional digital asset portfolios. The bank projects a tenfold increase in these holdings, reaching 10% of the total supply over time.
This rapid adoption of ETH by corporate treasuries rivals the inflow into spot ETH exchange-traded funds (ETFs), which are experiencing record demand. Several companies, including BitMine Immersion Technologies (BMNR) and SharpLink Gaming (SBET), have publicly embraced ETH treasury strategies, leveraging the passive yield generated through staking. This staking currently yields approximately 3%, providing a significant advantage over Bitcoin (BTC) treasury holdings which lack such passive income generation.
The increased demand from both ETFs and corporate treasuries has likely contributed to Ether’s outperformance against Bitcoin. The ETH/BTC ratio has risen from 0.018 in April to 0.032 in July, indicating a strengthening relative position for Ether. This trend surpasses the corporate adoption of Bitcoin, suggesting a longer-term structural shift within the institutional digital asset landscape.
Standard Chartered attributes Ether’s growing appeal to its unique advantages. The ability to generate yield through staking and explore decentralized finance (DeFi) opportunities provides a structural edge over Bitcoin. Furthermore, regulatory arbitrage plays a role, making Ether an attractive alternative for listed companies in jurisdictions with limited direct crypto access. This allows companies to hold digital assets on their balance sheets while benefiting from the yield opportunities Ether offers.
The report underscores the potential for continued growth in ETH treasury holdings, driven by yield generation and regulatory considerations. Standard Chartered maintains its year-end price target for Ether at $4,000, a prediction supported by the current market trends and growing institutional interest. At the time of publication, Ether was trading around $3,830. However, the report also cautions that risks remain associated with these investments.
