Following Bitcoin, Ethereum is becoming the new favorite for corporate asset allocation. According to a research report from Standard Chartered, institutional enterprises currently hold about 1% of the circulating supply of Ethereum, and over time, this is expected to increase tenfold to 10%, with Ethereum being favored as a mainstream allocation asset.
Standard Chartered pointed out in its report that the pace of corporate buying in this wave is almost on par with the capital inflow speed of Ethereum spot ETFs, which have recently seen a record influx of funds.
Recently, several listed companies have announced financial strategies involving Ethereum and are earning passive income through staking Ethereum. Representative companies include BitMine Immersion Technologies (BMNR) and SharpLink Gaming (SBET). By including Ethereum in their balance sheets, they can not only obtain about 3% annualized returns from staking but also participate in the leverage and yield opportunities provided by DeFi.
Geoffry Kendrick, Global Head of Digital Asset Research at Standard Chartered Bank, pointed out that enterprises' proactive layout in Ethereum may mark the beginning of a structural change in institutional digital asset investment portfolios.
According to his observations, the adoption rate of Ethereum by enterprises has surpassed that of Bitcoin, and its price performance is also superior. For example, the 'ETH/BTC' exchange rate has risen from 0.019 in April this year to 0.032 in July. Analysis indicates that the surge in ETF demand and the influx of corporate buying are the core driving forces behind Ethereum's relative strength.
Finally, Standard Chartered Bank reaffirmed its year-end target price for Ethereum at $4,000. As of the time of writing, the price of Ethereum is approximately $3,813, just a step away from the target price.
This article is reprinted with permission from: (Block Buddy)
Original title: (Optimistic about Ethereum's 'institutional buying' continuing strong! Standard Chartered: Corporate holdings are expected to increase tenfold)
Original author: Block Sister MEL
The article 'Standard Chartered: Corporate holdings of Ethereum are expected to increase tenfold! Year-end target price maintained at $4,000' was first published in 'Crypto City'
