Standard Chartered Sees ETH and Treasury Firms as Undervalued Despite Market Dip
Ether (ETH) and ETH treasury companies remain attractively priced even after the recent sell-off, according to Standard Chartered’s head of digital assets research, Geoff Kendrick.
Since June, ETH treasury firms have bought 2.6% of the circulating supply, while ETFs added another 2.3%, bringing combined purchases to nearly 5% of total supply. That wave of demand helped ETH climb to an all-time high of $4,955 on August 24 before its latest pullback.
Kendrick reiterated his $7,500 year-end target, arguing that the decline below $4,500 this week provides “a strong entry point.” He also highlighted that valuations of firms like Sharplink Gaming and Bitmine Immersion have dropped below those of MicroStrategy (MSTR), despite ETH’s staking yield advantage. He noted Sharplink’s recent pledge to repurchase shares if its NAV multiple falls under 1.0 as a firm support for valuations.
ETF Demand Resilient
Flows into ETH ETFs have stayed strong despite volatility. On Monday, as ETH dropped 8% — four times bitcoin’s decline — ETFs still absorbed $444 million, led by BlackRock’s iShares Ethereum Trust (ETHA) with $315 million, according to Farside Investors. That followed $338 million in inflows on Friday, after Fed Chair Jerome Powell’s dovish Jackson Hole speech spurred demand.
