Ether and ETH Treasury Firms Seen as Undervalued Despite Market Pullback, Standard Chartered Says

Ether (ETH) and companies holding large reserves of the cryptocurrency remain attractively priced at current levels, according to Standard Chartered’s head of digital assets research, Geoff Kendrick.

In emailed remarks Tuesday, Kendrick noted that since the start of June, ETH treasury firms have acquired around 2.6% of the total ETH supply, while combined with inflows into ether exchange-traded funds (ETFs), that figure climbs to 4.9% of all circulating ETH.

The accumulation helped push ETH to a fresh all-time high of $4,955 on August 24, he said, adding that the buying trend is still in its early stages. Kendrick maintains his view that treasury companies could eventually control 10% of the token’s supply, a target he described as well within reach.

Despite ETH’s sharp pullback below $4,500 in recent days, Kendrick reiterated his year-end price target of $7,500, calling the latest sell-off a “compelling entry point” for long-term investors.

On valuations, Kendrick highlighted that market NAV (mNAV) multiples for ether treasury firms such as Sharplink Gaming and Bitmine Immersion have fallen below that of bitcoin-heavy MicroStrategy (MSTR). Given ETH treasuries benefit from the network’s 3% staking yield, he sees no justification for their multiples to trade at a discount to MSTR.

Adding to the bullish case, Sharplink (SBET) announced Friday that it would repurchase shares if its NAV multiple falls below 1.0 — a move Kendrick said provides a “hard floor” for valuations in the space.

ETF Flows Stay Resilient

Even as Monday’s sell-off dragged ETH down by 8% — around four times bitcoin’s decline — demand for ether ETFs remained robust. Funds absorbed $444 million of inflows, led by BlackRock’s iShares Ethereum Trust (ETHA), which alone attracted $315 million, according to Farside Investors.

This followed $338 million of inflows on Friday, when ether surged on dovish remarks from Fed Chair Jerome Powell at Jackson Hole.