Standard Chartered Bank: ETH and holding companies are seriously undervalued! Aiming for $7,500 by the end of the year.

Geoffrey Kendrick, the global head of digital assets research at Standard Chartered Bank, has once again issued a strong bullish signal for Ethereum (ETH). In his latest report, he pointed out that although the ETH price has recently reached an all-time high, the valuation of ETH and the asset management companies holding ETH remains “cheap,” with a year-end target price maintained at $7,500.

Funds are crazily absorbing ETH circulation

(Source: Standard Chartered Bank)

Kendrick’s data shows that since June, the Ethereum Digital Asset Trust (DAT) has purchased 2.6% of circulating ETH, while the spot ETH ETF has absorbed an additional 2.3%. In less than three months, the market has absorbed 4.9% of the circulating supply, driving ETH to a historic high of $4,955 on August 24.

He believes that fund management companies may ultimately hold up to 10% of the circulating supply of ETH, with BitMine Immersion aiming to reach 5%.

Is the valuation lower than MSTR? Staking yield becomes key

(Source: Standard Chartered Bank)

Kendrick pointed out that the valuations of ETH fund management companies like SharpLink Gaming (SBET) and BitMine Immersion (BMNR) are now lower than that of Bitcoin giant Strategy (MSTR) in terms of net asset value (NAV) multiples.

He emphasized that the ETH asset management company can achieve a 3% staking yield, whereas MSTR does not have this advantage, so the NAV multiple should not be lower than that of MSTR.

In addition, SBET has stated that if the NAV multiple falls below 1.0, it will initiate a stock buyback plan to provide a “hard bottom” for the valuation.

The advantages of long-term investment in ETH surpass those of the US spot ETF

Kendrick stated earlier this month that the appeal of ETH DAT to investors is higher than that of the US spot ETF, as the latter cannot participate in staking or DeFi.

He maintains a long-term target of 7,500 USD for ETH by the end of the year and 25,000 USD by 2028, viewing the recent sell-off as an “ideal entry point.” Currently, the price of ETH is around 4,530 USD.

Kendrick’s Cryptocurrency Market Outlook

Aside from ETH, he is also optimistic about other crypto assets:

Bitcoin (BTC): $135,000 by the end of September, $200,000 by the end of the year, and $500,000 by 2028.

Avalanche (AVAX): $250 in 2029

Ripple (XRP): $12.50 in 2028

Stablecoin market: nearing $2 trillion in size by the end of 2028

Conclusion

Standard Chartered’s analysis shows that the valuation of ETH and the holding companies is still far below the expected level, especially in the context of rising staking yields and institutional holdings. The price has long-term explosive potential. If the year-end target of $7,500 becomes a reality, the current price may be the golden entry point for long-term investors.