Ethereum is entering a new phase of institutional adoption. From treasury strategies to bullish price targets, it is getting serious attention from corporate and financial players.
As per a recent report from Standard Chartered, institutional treasuries now hold around 1% of ETH’s total circulating supply. But that’s just the beginning.
The bank believes that this could grow tenfold, with businesses eventually holding up to 10% of ETH’s total supply.
Ethereum Gains Edge Over Bitcoin
Corporate ETH buying and spot Ether ETF inflows are both on the rise. According to data from Sosovalue, the cumulative total net inflow for spot ether ETFs has reached $9.40 billion.
The rise in interest has likely played a big role in ETH outperforming Bitcoin recently. The ETH/BTC ratio has jumped from 0.018 in April to 0.032 in July. Geoff Kendrick, analyst at Standard Chartered, notes that this could spark the start of a bigger shift, where institutions begin favoring Ethereum more heavily in their digital asset portfolios, even over Bitcoin.
Is ETH More Attractive Than BTC?
Ethereum is emerging as a more useful treasury asset than Bitcoin. While Bitcoin is often held for its scarcity, Ethereum offers the added benefits of staking rewards, currently around 3%, along with access to DeFi tools that can boost returns.
In regions with strict crypto regulations, Ethereum also stands out. The report suggests that ETH can serve as a smart workaround for companies that want crypto exposure on their balance sheets but face regulatory limitations.
That makes ETH a more flexible option for publicly listed firms.
Staking Brings Rewards and Risks
However, a Bernstein report highlights how Ethereum treasuries are taking a different approach than Bitcoin-focused ones. Instead of just holding ETH, companies are staking it to earn yield and boost earnings.
But this strategy isn’t without risks. There are liquidity delays when unstaking, and tools like restaking or DeFi protocols introduce smart contract risks that traditional assets don’t face.
Companies like BitMine, SharpLink, and Bit Digital have accumulated over 876,000 ETH in July, with BitMine alone crossing $2 billion in ETH and aiming for 5% the total supply. Bernstein sees Ethereum gaining long-term value from its growing ecosystem.
Will Ethereum Cross $4,000? Analysts Debate
Ethereum briefly crossed $3,900 on Monday, its highest since December 2024, before pulling back. It has surged over 50% in the past month.
Standard Chartered has maintained its $4,000 target for Ethereum, while analysts expect it to break its previous all-time high of $4,800 this year. BitMEX founder Arthur Hayes even sees it hitting $10,000. Meanwhile, Tom Lee’s Bitmine projected an eye-popping $60,000 target.
Chris Burniske pointed out that Ethereum went from the most hated coin to the favorite in just about five weeks.
Crypto analyst Wolf predicts that in a conservative scenario, ETH could reach over $8,000, while the more optimistic view targets above $13,000. Wolf also warned that after Ethereum hits a new all-time high, a typical market correction of 20-25% is likely before the next rally begins.
Ethereum is quickly becoming more than a digital asset and is now a long-term strategic play. The token is currently trading at $3,853, down 0.7% in the last 24 hours.
