Standard Chartered Sees Potential 10x Increase in Ethereum Holdings by Companies

LONDON – Public companies buying large quantities of Ether (ETH) are unlikely to stop anytime soon, according to analysis from UK bank Standard Chartered.

Standard Chartered noted that eleven different firms holding millions of Ethereum coins on their balance sheets already possess roughly 1% of all coins in circulation. “Just as these companies will keep buying Ether, even more companies will join the trend. And that means even more buying,” predicted Geoffrey Kendrick, Standard Chartered’s head of digital assets.

Kendrick wrote in a client note Tuesday, projecting, “They may eventually end up owning 10% of all ETH, a 10x increase from current holdings.”

While Ethereum acted as a laggard during much of this year’s crypto rally, recent weeks have shown signs of an improvement. Ether climbed approximately 51% since June, according to CoinGecko data, coinciding with a significant buying push by public corporations. Over the same period, sentiment has been positive for other top cryptocurrencies too, including Bitcoin (+13%) and Solana (+17%).

Beyond corporate treasury purchases, several other factors have contributed to the growing interest in Ethereum. Analysts cite the US passage of landmark stablecoin legislation as another positive driver. This is because, by some estimates, over fifty percent of all stablecoins and tokenized financial assets are built on the Ethereum network.

Furthermore, the launch and growing appeal of Ethereum spot exchange-traded funds (ETFs) on Wall Street have played a crucial role. According to market data provider CoinGecko, spot crypto ETFs attracted nearly $1.9 billion last week, with Ether-focused funds accounting for over 84% of that inflow. Standard Chartered’s Kendrick points out another advantage of treasury companies: They can stake their ETH holdings on the proof-of-stake network to earn roughly a 3% annual percentage rate (APR) yield, which is currently not permitted for US-based Ether ETFs. This staking capability offers an additional potential return for companies holding crypto on their balance sheets. SharpLink, the former online gaming company which operates as an Ether treasury firm, has stated it has nearly staked all (99.7%) its approximately $425 million Ether stake.

Standard Chartered suggests this combination of yield potential from staking and other factors may push the token price higher this year. However, despite the overall trend, Ethereum declined 1.3% recently to reach a price of $3,754.

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