Standard Chartered calls 'cheap': Ethereum and reserve companies are both undervalued, ETH expected to reach $7,500 by year-end

Geoffrey Kendrick, Global Head of Digital Assets Research at Standard Chartered, stated that Ethereum and digital asset financial companies holding a large amount of Ethereum are clearly undervalued in the market.

In a research report released on Tuesday, Geoffrey Kendrick pointed out that since June of this year, digital asset financial companies have purchased 2.6% of the total circulating Ethereum globally, while spot ETFs have absorbed 2.3% of Ethereum during the same period.

In other words, in less than 3 months, a total of 4.9% of Ethereum's supply has been absorbed by institutions, driving Ethereum to a historical high of $4,946 on August 24.

Nevertheless, Geoffrey Kendrick believes that Ethereum and the stock price of the Ethereum Reserve Company still appear 'cheap', and he reiterated that the holding size of such companies is expected to increase to 10% of Ethereum's circulation in the future. He stated that only BitMine Immersion plans to hold 5% of the circulating supply.

He reminds that the 'per share net asset multiple (mNAV)' of Ethereum reserve companies like SharpLink Gaming (SBET) and BitMine Immersion (BMNR) is clearly lower than that of Bitcoin investment giant Strategy (MSTR).

Geoffrey Kendrick stated: 'The Ethereum Reserve Company can enjoy an additional 3% staking yield, yet its valuation is lower than MSTR, which cannot obtain this yield, which is obviously unreasonable.'

He also added that SharpLink Gaming committed last week that if the mNAV falls below 1.0, it will initiate a share buyback, effectively setting a 'hard floor' for market valuation.

Standard Chartered reaffirms long-term bullish outlook, looking up to $7,500 by year-end.

Geoffrey Kendrick emphasized repeatedly that the Ethereum Reserve Company is 'extremely attractive for investment', even better than the US Ethereum spot ETF, because ETFs cannot participate in staking and cannot invest in decentralized finance (DeFi).

He maintains a long-term optimistic forecast for Ethereum: expected to rise to $7,500 by the end of this year, and to $25,000 by 2028.

Geoffrey Kendrick believes that the recent pullback in Ethereum is 'an excellent entry opportunity.' As of now, Ethereum is priced at approximately $4,530.83, having risen 3.7% in the past 24 hours.

Additionally, he raised the Bitcoin target price in July of this year, believing that Bitcoin will rise to $135,000 by the end of September, challenge $200,000 by year-end, and even reach $500,000 by 2028.

At the same time, he also predicts that BNB will rise to $2,775 by 2028; Avalanche (AVAX) will rise to $250 by 2029; Ripple (XRP) will rise to $12.5 by 2028; and the stablecoin market size is expected to approach $2 trillion by the end of 2028.

"Standard Chartered calls 'cheap': Ethereum and reserve companies are both undervalued, ETH expected to reach $7,500 by year-end" This article was first published on (Blockke).