How public companies could end up holding 10% of all Ethereum
The 11 different firms that hold millions of the cryptocurrency on their balance sheet already hold roughly 1% of all coins in circulation, the UK bank said in a Tuesday note to investors.
But Geoffrey Kendrick, Standard Chartered's head of digital assets, predicts that just as these companies will keep buying Ether, even more companies will join the trend.
And that means even more buying.
'They may eventually end up owning 10% of all ETH, a 10x increase from current holdings,' Kendrick wrote on Tuesday.
A laggard for much of this year's rally, Ethereum is finally showing signs of life over the past few weeks. Since public companies started buying the coin in earnest in June, Ether has rallied some 51%, according to CoinGecko.
Over that same period, Bitcoin has risen some 13% and Solana rose 17%.
Besides treasury companies, Ethereum has had other tailwinds. Other analysts are touting the passage of landmark stablecoin legislation in the US as another driver behind the uptick in Ether.
That's because more than 50% of all stablecoins and tokenised financial assets are minted on the Ethereum network.
Elsewhere in the market, spot Ethereum exchange-traded funds are also attracting Wall Street investors more than ever. Of the $1.9 billion in investor money buying various spot crypto ETFs, Ether funds accounted for more than 84% of that figure last week.
The treasury company play offers investors other advantages not realised by the Ether funds either, writes Kendrick.
US Ether funds aren't yet allowed to stake the underlying coins, or put them to work securing the blockchain via its proof-of-stake consensus mechanism.
Treasury companies can, however, do this and rake in roughly 3% yield for doing so.
SharpLink, the online gaming company turned Ether treasury firm co-chaired by Joe Lubin, has already staked 99.7% of its $425 million stake.
Lubin told DL News in June that there's a whole lot more planned in the future, too.
All of this combined, writes Kendrick, may push Ethereum above $4,000 this year.
Crypto market movers
Bitcoin has dropped 0.6% in value over the past 24 hours and is trading at $117,436.
Ethereum also shed 1.3% in the same period to $3,754.
What we're reading
Monero miners lampoon Qubic's thwarted 51% attack as publicity stunt — DL News
21 market catalysts to watch this week— Milk Road
Binance Earn to Let Users Buy Crypto Below Market Price — Unchained
Crypto lender Abra pauses withdrawals as dozens of customers fear their funds are gone — DL News
Liam Kelly is a Berlin-based reporter for DL News. Got a tip? Email him at liam@dlnews.com.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
17 minutes ago
- Yahoo
Ethereum ETFs, Treasury Companies Now Hold Over $32B In ETH: Here's What's Driving The Frenzy
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Corporate treasuries and spot ETFs are rapidly consolidating their hold on Ethereum (CRYPTO: ETH), with combined on-chain and off-chain holdings now surpassing $32 billion. Data compiled by SER shows that 64 entities, spanning publicly listed firms, exchanges, DeFi protocols, nonprofits and governments, collectively hold 2.73 million ETH in their treasuries, valued at over $10.5 billion. Invest in Gold American Hartford Gold: #1 Precious Metals Dealer in the Nation Priority Gold: Up to $15k in Free Silver + Zero Account Fees on Qualifying Purchase Thor Metals Group: Best Overall Gold IRA This marks a notable shift in asset allocation strategies, particularly as companies like Bitmine Immersion Tech (AMEX:BMNR), SharpLink Gaming (NASDAQ:SBET), and Ether Machine now individually surpass the Ethereum Foundation in ETH holdings. Trending: 7,000+ investors have joined Timeplast's mission to eliminate microplastics— Bitmine alone controls 625,000 ETH, followed by SharpLink with 438,200 ETH and Ether Machine with 334,800 ETH. U.S. spot Ethereum ETFs have seen explosive growth, with net inflows totaling $5.38 billion over a 19-day streak that began on July 3. This matches a prior record streak from May but significantly exceeds it in dollar terms. BlackRock's (NASDAQ:ETHA) fund leads the pack, pulling in $4.19 billion during this run and controlling over 3 million ETH — about 2.5% of total ETH supply. Altogether, U.S. spot Ethereum ETFs now hold approximately 5.7 million ETH, valued near $22 billion. That figure represents 4.7% of Ethereum's circulating supply, per data from CoinGlass. These allocations make ETFs the single largest collective holder of ETH assets, outpacing even corporate It Matters: This trend of institutional accumulation has been supported by recent regulatory shifts. On Tuesday, the U.S. SEC approved in-kind redemptions for crypto ETFs, allowing authorized participants to exchange ETH and BTC directly for ETF shares, rather than cash, a move that aligns the structure of crypto funds with traditional markets and improves tax efficiency. Additionally, BlackRock received acknowledgment from the SEC for its 19b-4 filing to enable staking within its ETH ETF, setting the stage for a new layer of yield-generating exposure for institutional investors. Standard Chartered's digital assets head Geoffrey Kendrick predicts ETH treasuries could grow to control as much as 10% of the total supply, citing yield-generating opportunities like staking and deeper DeFi integration. However, analysts at Bernstein caution that staking strategies, while lucrative, come with liquidity and smart contract risk. The current momentum underscores a new phase for Ethereum, not only as a tech stack for decentralized applications but increasingly as a yield-bearing, institutionally held financial asset. Read Next: $100k+ in investable assets? Match with a fiduciary advisor for free to learn how you can maximize your retirement and save on taxes – no cost, no obligation. If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it? Image: Shutterstock This article Ethereum ETFs, Treasury Companies Now Hold Over $32B In ETH: Here's What's Driving The Frenzy originally appeared on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23 minutes ago
- Yahoo
Metaplanet Plans $3.7B Stock Raise to Fuel Massive Bitcoin Buying Spree
Metaplanet announced Friday it has filed to raise $3.7 billion (¥555 billion) through a massive stock offering to fund one of Asia's largest corporate Bitcoin accumulation strategies. The Tokyo-listed investment firm filed a shelf registration effective from August 9, 2025 until August 8, 2027, allowing it to issue securities in portions when market conditions align. The proposed raise represents approximately 75% of Metaplanet's current market capitalization of $4.9 billion (729.45 billion yen). "The Company intends to actively pursue equity financing as part of its 'Bitcoin Strategy,'" Metaplanet said in the filing. "We believe that introducing Bitcoin-backed preferred shares represents a pioneering effort to fill this gap." This capital-raising effort supports Metaplanet's previously announced goal of accumulating 210,000 BTC by the end of 2027, a target that would require the company to increase its current holdings more than twelvefold. The company currently holds 17,132 BTC worth over $1.97 billion at a price of $114,396, following its most recent purchase of 780 BTC on July 28. The proposal involves establishing two new classes of perpetual preferred shares, Class A and Class B, each with potential issuance values of $1.9 billion (277.5 billion yen). These shares would offer dividend payouts up to 6% annually, taking priority over common shareholders, with all proceeds earmarked specifically for Bitcoin acquisitions. However, the company cautioned that "no specific plan for the issuance of the Preferred Shares is currently in progress, and it is uncertain whether such issuance will take place." The proposal also requires increasing authorized shares from 1.61 billion to 2.723 billion, which shareholders will vote on at an Extraordinary General Meeting scheduled for September 1. The Bitcoin treasury strategy Metaplanet's approach follows that of Strategy, the largest corporate Bitcoin treasury, which earlier this week secured $2.5 billion by issuing STRC, a perpetual preferred stock designed to pay a floating monthly dividend starting at 9%. Bitcoin is trading at a price of $115,869, down 2% in the last 24 hours, according to CoinGecko. Despite current market conditions, QCP Capital shared in its latest report that "ongoing accumulation efforts" by companies like Startegy demonstrate 'long-term conviction.' However, the firm cautioned that price action failing to respond to positive headlines represents "textbook late-cycle behaviour." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23 minutes ago
- Yahoo
Fold Taps Blackhawk to Bring Bitcoin Gift Cards to Over 400K Retailers
Bitcoin financial services company Fold is working with publicly traded prepaid gift-card provider Blackhawk Network to widen distribution of its BTC gift card, the companies announced Thursday. Fold—which began trading publicly on the Nasdaq Composite in February under the ticker FLD—lets customers accrue Bitcoin rewards by using its services. They can also buy BTC through the platform without fees. "By making Bitcoin available as a gift card, we're opening access to the millions of consumers who already buy, send, and use gift cards," Fold Chairman and CEO Will Reeves said. "It's about meeting people where they are and integrating Bitcoin into the financial tools and channels they already understand," he continued, adding that by working with Blackhawk, Bitcoin would find access to the $300 billion U.S. gift card market. Fold first debuted its card in May as a way for consumers to give Bitcoin as a gift in a user-friendly format that doesn't require an understanding of crypto wallets. The initiative reflects the growing efforts of digital asset firms and other companies to provide cryptocurrency-focused services to a wider range of people. The card allows people to give people the leading cryptocurrency in physical form. The crypto can then be transferred to wallets. Recipients redeem their gift card through the Fold App and other platforms. Fold said that it was adding online retailers to its network. Fold's deal with Blackhawk will mean the gift card will be available to potentially over 400,000 shops and e-commerce platforms. A Fold spokesperson told Decrypt that the idea was "to make Bitcoin as accessible and flexible as possible for both new and experienced users." Bitcoin Whales Bought 1% of Circulating BTC Supply in Past 4 Months Fold is among the few digital assets companies to be publicly traded. Fold last year announced plans to go public via a special purpose acquisition company agreement (SPAC) with FTAC Emerald Acquisition Corp. The deal valued the firm at $365 million. Bloomberg last week reported that Chicago-based private equity firm GTCR was in talks to acquire Blackhawk. Bitcoin has made increasing inroads with the mainstream after last year's SEC's approval of crypto ETFs. Such funds trade on stock exchanges and allow people to buy shares that track the price of the asset. Crypto-friendly President Donald Trump also established a Bitcoin strategic reserve, highlighting the administration's acceptance of the asset. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
