Ethereum Treasury Holdings Surge to Near 2%
Institutional accumulation continues despite risks
Two months after their inception, Ethereum treasury companies have consolidated nearly 1% of all ETH in circulation, with strategic reserves currently valued at approximately $9 billion. These holdings are rapidly approaching 2% of the total ETH supply, according to the data source Strategic ETH Reserve.
Institutional Growth Potential
Geoff Kendrick, global head of digital assets research at Standard Chartered, anticipates a significant expansion, projecting that ETH treasury holdings could ultimately reach 10% of the total supply—a tenfold increase from current levels.
Kendrick suggests achieving this potential could push the cryptocurrency’s price above the $4,000 threshold, stating the markets could break above the key $4,000 level if current inflows persist.
Leading Treasury Holders
According to analysis by Standard Chartered since June, the two largest Ethereum treasury companies are Peter Thiel-backed BitMine, holding ETH valued over $2 billion, and SharpLink with reserves surpassing $1.3 billion.
Drivers and Risks
Companies manage these reserves due to the potential benefits derived from staking rewards and DeFi utilities. However, institutional interest must also navigate regulatory hurdles and risks associated with active DeFi participation.
Analysts at Bernstein note risks including extended unstaking periods and inherent smart contract vulnerability management required for DeFi involvement.
Market Perspective
Predictions highlight potential growth, yet short-term market data shows Ethereum’s price recently trading near $3,861.40, having gained 0.5% earlier in the day before pausing. Increasingly, however, trading volume signals robust interest.
