ETH treasury companies appear to be significantly undervalued after Ether’s recent dip, according to Standard Chartered’s global head of digital assets research, Geoff Kendrick. Despite sharp market fluctuations, key data shows increasing accumulation by institutional players, suggesting long-term bullish fundamentals for ETH and related firms.
Rising Institutional Accumulation of ETH
Since early June, ETH treasury companies have been actively accumulating large amounts of ether. Kendrick revealed these firms have acquired 2.6% of the total circulating ETH supply. Including inflows from exchange-traded funds (ETFs), this amount jumps to 4.9% of the entire supply—a clear sign of robust institutional interest and confidence in Ether’s long-term potential.
This significant buying pressure helped push ETH to a record high of $4,955 on Sunday, June 24, demonstrating how such inflows can impact market dynamics. Kendrick emphasized that this could signal just the beginning of intensified accumulation. His prior estimate suggests these treasury firms are on track to eventually control 10% of ETH’s circulating supply.
Opportunity Amidst ETH Price Correction
Despite a brief downturn that saw ETH dip below $4,500 over the past two days, Kendrick remains confident in ether’s upward trajectory. He maintained his year-end prediction of $7,500, viewing the current price weakness as a favorable entry point for investors seeking long-term exposure.
This correction is being interpreted not as a structural failure but rather as a temporary adjustment, offering strategic purchase opportunities.
Valuation of ETH Treasury Companies
As the ETH price fluctuates, so too do the valuations of companies holding significant ether reserves. Kendrick noted that some ETH treasury stocks, like Sharplink Gaming and Bitmine Immersion, are now trading at mNAV (market Net Asset Value) multiples below that of Michael Saylor’s Strategy (MSTR), which mainly holds bitcoin and offers no staking yield.
In contrast, ETH treasury companies benefit from Ethereum’s 3% staking yield—a meaningful difference that, according to Kendrick, should give these companies higher multiples than MSTR. The discrepancy in valuation therefore supports the view that these firms are currently undervalued.
Graph comparing ETH staking returns to non-yield-bearing assets like bitcoin (BTC).
Further solidifying investor confidence, Sharplink (SBET) announced that it would initiate a $1.5 billion stock repurchase program if its NAV multiple falls below 1.0. This creates a hard floor for valuations and reassures investors about downside protection.
Consistent ETF Inflows Signal Confidence
Even as the broader crypto market suffered a downturn on Monday—ETH fell 8%, significantly more than bitcoin’s 2% dip—ETF investors continued to pile in. According to Farside Investors, Ethereum spot ETFs witnessed $444 million in inflows on Monday alone.
Leading the way was BlackRock’s iShares Ethereum Trust (ETHA), with an impressive $315 million in inflows. This followed Friday’s figure of $338 million, driven by bullish sentiment sparked by Fed Chair Jerome Powell’s dovish tone during his Jackson Hole speech.
These sustained inflows demonstrate strong institutional appetite for Ethereum exposure, even amid volatility. It underscores the thesis that ETH remains an attractive asset for large-scale accumulation.
Read more: Ethereum Treasury Stocks ‘Better Buy’ Than ETH ETFs, Standard Chartered Says
