Key Takeaway: Standard Chartered reports that corporations have collectively acquired 1% of the total Ether supply.
Recent developments indicate that corporations are increasingly acquiring Ether at a more rapid rate than Bitcoin, reflecting a noteworthy shift in institutional focus towards the second-largest cryptocurrency as it approaches its 10th anniversary. This trend is corroborated by a research report from Standard Chartered published in conjunction with Cointelegraph.
Since early June, businesses specializing in cryptocurrency treasury management have secured approximately 1% of the total Ether supply. The financial institution highlighted this trend in a report released on Tuesday.
During this same timeframe, Ether-dedicated treasury firms have accelerated their investment activities, outpacing those targeting Bitcoin investments. This shift has allowed Ethereum to demonstrate stronger price performance compared to Bitcoin, as noted in the report.
“Purchases by these corporations, coupled with a record-high period for ETH ETFs, have undeniably supported these price gains,”
The Standard Chartered report also stated that ongoing capital inflows may well see Ether surpass its year-end target of $4,000.
Despite the increasing interest and accumulation among corporations and U.S. spot Ether ETFs, it’s important to note that Ether’s price is still more than 21% below its all-time peak of $4,890, which was reached in November 2021.
Future Growth Projections for Ether Investments
According to Standard Chartered, there is significant room for growth for Ether-centered treasury firms compared to their Bitcoin counterparts, particularly due to favorable regulatory dynamics.
These Ether-focused firms can leverage both staking rewards and decentralized finance (DeFi) opportunities, which are currently outside the reach of U.S. Ethereum ETFs. The report posits:
“We expect these entities may ultimately command 10% of the entire Ether supply, marking a tenfold increase from their present holdings.”
Currently, the largest Ether treasury firm, BitMine Immersion Tech, owns 625,000 Ether tokens, comprising 0.52% of the total circulating Ether supply. The firm disclosed its intentions to acquire a larger stake as part of a $1 billion stock buyback initiative.
Nasdaq-listed Sharplink holds the position of the second-largest corporate Ether stakeholder, with 438,190 Ether after making purchases worth $290 million at an average price of $3,756 between July 21 and July 27.
A recent report also unveils that a newly established entity named the Ether Machine aims to create one of the largest on-chain Ether positions among public entities by acquiring over 400,000 ETH worth more than $1.5 billion, with plans to list on Nasdaq under the ticker symbol “ETHM.”
Market Outlook for 2025
Looking through to 2025, projections suggest that Ether could see a resurgence, potentially aligning itself closely with Bitcoin and Solana in market dominance. As corporate participation in Ether increases—highlighted by major acquisitions and the anticipated growth of Ether ETFs—the Ethereum ecosystem will likely solidify its standing in the digital asset landscape. #Corporations #Acquire #Ether #Supply #Standard #Chartered
https://images.cointelegraph.com/cdn-cgi/image/format=auto,onerror=redirect,quality=90,width=1200/https://s3.cointelegraph.com/uploads/2025-07/01985639-5e72-76f8-9429-8b147ef22a19
🔍 Cointelegraph.com News Expert Review:
- Trend: [rule_1_plain]
- Risk Level:
To rate the risk associated with corporations acquiring 1% of Ether’s supply, several factors should be considered:
-
Market Impact: The accumulation of a significant percentage of Ether by corporations could influence prices and market volatility.
-
Regulation: Increased corporate involvement could attract regulatory scrutiny, impacting the market dynamics.
-
Supply and Demand: A shift in supply ownership could alter the demand landscape, affecting liquidity.
-
Technological Factors: The underlying technology and network stability can impact Ether’s value.
-
General Market Sentiment: How the broader cryptocurrency market responds to this move plays a significant role.
Given these factors, I would rate the risk at 6/10. While it presents potential benefits, the longer-term impacts on volatility, regulatory responses, and market sentiment can pose significant risks.
-
[ad_1]
Source: cointelegraph.com | Last Updated: [now format=”F j, Y”]
