Standard Chartered believes Ethereum may be on the verge of outperforming Bitcoin following Strategy’s recent Bitcoin sale, according to the bank’s Head of Digital Assets Research, Geoffrey Kendrick.
The prediction comes at a time when Bitcoin has faced renewed selling pressure, falling below the $70,000 mark, while Ethereum has remained relatively resilient compared to the broader crypto market.
Ethereum May Be Reaching a Turning Point
In a recent note to clients, Kendrick suggested that Strategy’s decision to sell 32 BTC could mark an important turning point in the ETH/BTC relationship. Although Ethereum has lagged behind Bitcoin for much of the year and has suffered larger year-to-date losses, the analyst believes conditions are now shifting in Ethereum’s favor.
According to Kendrick, market developments like the recent Bitcoin sale can often signal major trend reversals. He noted that even if Strategy later resumes aggressive Bitcoin purchases, his outlook on Ethereum’s potential strength relative to Bitcoin remains unchanged.
The analyst has previously compared Ethereum’s current position to Amazon during the dot-com era, arguing that the network’s underlying fundamentals appear significantly stronger than what current market prices suggest.
Stronger Fundamentals Support Ethereum
Kendrick highlighted that Ethereum continues to experience improvements across its ecosystem despite the market’s muted price response. This view has also been echoed by industry figures, including Bitmine Chairman Tom Lee, who recently stated that Ethereum’s market valuation does not accurately reflect the network’s strengthening fundamentals.
While Bitcoin experienced a sharper decline after Strategy’s sale announcement, Ethereum managed to hold key support levels. Market data showed ETH losing less than 2% during the period, compared to Bitcoin’s decline of nearly 5%.
Why Ethereum Treasury Companies Have an Advantage
Another factor supporting Ethereum’s outlook is the growing number of Ethereum treasury firms. Kendrick pointed out that these companies benefit from staking rewards, allowing them to generate yield on their holdings without needing to liquidate assets.
Bitcoin treasury companies do not have access to a similar mechanism, making them more dependent on external financing or asset sales when raising capital.
Because of this advantage, Kendrick expects Ethereum-focused treasury firms could eventually achieve higher Market Net Asset Value (mNAV) multiples than Strategy, which remains the largest Bitcoin treasury company.
Treasury Firms Continue Accumulating Crypto
Despite ongoing weakness across cryptocurrency markets and declining valuations for many crypto-related stocks, major treasury firms continue to increase their digital asset holdings.
Strategy remains committed to expanding its Bitcoin reserves, while Bitmine continues accumulating Ethereum. To support additional Bitcoin purchases, Strategy has increasingly relied on its preferred security, STRC, as a funding source amid pressure on its stock price.
As institutional interest in digital assets continues to evolve, Standard Chartered believes Ethereum may be positioned to gain ground against Bitcoin, particularly if its improving fundamentals begin to receive greater recognition from investors.
