Standard Chartered says a small bitcoin sale by Strategy could mark the start of a period of stronger performance for ether relative to bitcoin, as structural differences between the two networks begin to show up in corporate treasury behavior and market pricing.
Strategy trims bitcoin, market reacts sharply
In the last week of May, Strategy sold 32 bitcoin, a minor reduction from its remaining 843,706 bitcoin holdings, according to a research note from the bank.
Soon after the disclosure, bitcoin slipped below $70,000, trading near $68,790 on Tuesday, down just over 4.25% in 24 hours. Ether fell only about 0.25% to roughly $1,975 over the same period.
Standard Chartered’s Geoffrey Kendrick said Monday’s market action was among the 24 largest ETH-BTC moves higher on days when bitcoin traded lower since early 2024, underscoring shifting relative momentum between the two assets.
Bank forecasts higher ETH-BTC ratio
Kendrick projected that the ETH-BTC ratio could rise to 0.040 by year-end, up from around 0.028 now. He said that outlook would remain intact even if Strategy were to buy back a significant amount of bitcoin later.
The report emphasized that the market’s sharp response to what was essentially a routine liquidity move exposed a fragile reliance on the idea of relentless corporate bitcoin accumulation. That narrative, the bank suggested, is now being tested.
Strategy’s sale was not a distress event, Standard Chartered noted. The company sold bitcoin above its average cost basis to help meet dividend obligations on its preferred stock. Even so, the decision came as U.S. spot bitcoin ETFs recorded record monthly outflows of about $2.43 billion in May, adding pressure to sentiment.
Strategy’s share price dropped more than 7% on Tuesday morning, extending losses from Monday, as traders reassessed the company’s role as a pure bitcoin accumulation vehicle.
Ethereum treasuries gain edge from staking yield
Standard Chartered highlighted a key difference between bitcoin and ethereum corporate treasuries: the ability of ethereum-linked firms to earn ongoing yield from staking. Staking yields near 3% provide a regular return on ETH holdings and reduce the need for sales to fund operations or shareholder distributions.
Bitcoin treasury companies, the note said, lack an equivalent yield mechanism, leaving them more dependent on price appreciation and balance sheet sales.
This gap could allow ethereum treasury firms to command higher multiples of net asset value, or mNAVs, compared with bitcoin-focused peers over time, the bank argued.
Recent data cited in the report showed that the mNAVs of major ethereum treasury companies, including Bitmine Immersion and Sharplink, have slipped below Strategy’s level but could rebound in coming months if ether’s relative performance improves and staking economics remain attractive.
Bitmine Immersion steps up ether accumulation
While Strategy trimmed its bitcoin holdings, Bitmine Immersion continued to build its ether position. The firm purchased an additional 26,497 ETH, moving closer to its stated goal of holding 5% of the total ether supply.
Company leadership has publicly argued that current ether prices understate ethereum’s fundamental strength, pointing to network activity, staking participation and protocol revenues.
Standard Chartered linked Bitmine Immersion’s ongoing buying to a broader shift in how corporate treasuries view ethereum, particularly its income-generating potential.
Staking drives ether scarcity, supports bullish case
The report noted that staking has become a significant structural force in the ether market. With staking yields around 2.7%, many holders are choosing to lock up their ETH, reducing the liquid supply.
More than 32% of the total ether supply is now staked, recent data show. According to the bank, this creates a scarcity effect that can amplify price moves: even moderate buying pressure can push prices higher when a large share of supply is off the market.
This stands in contrast to bitcoin, where supply dynamics are currently dominated by macro headwinds and fund flows rather than protocol-level yield. Bitcoin’s market is contending with persistent inflation concerns, a strong U.S. dollar and recent ETF outflows, all of which have weighed on sentiment.
Institutional appetite shifts toward ethereum and risk controls
Standard Chartered also cited a recent survey of institutional traders indicating that 73% plan to increase digital asset allocations in 2026. However, they are doing so with tighter risk management and clearer governance frameworks than in earlier cycles.
Within that shift, the bank suggested, ethereum’s combination of yield, staking-driven scarcity and expanding use cases could draw more attention relative to bitcoin, especially if the ETH-BTC ratio trends toward the bank’s 0.040 target.
For now, the bank’s note argues that the Strategy sale, though small, may have marked a psychological turning point: a move away from unquestioned corporate bitcoin accumulation and toward a more nuanced, yield-aware approach in which ether gains ground.
Explore how Ethereum’s staking edge may reshape portfolios in 2025—read Bitcoin vs Ethereum key differences now.
Disclaimer: The content on this page is provided for general informational purposes only and does not represent the views or financial advice of Toobit. We make no guarantees regarding the accuracy or completeness of this information and shall not be held liable for any errors, omissions, or outcomes resulting from its use. Investing in digital assets involves risk; users should independently evaluate their financial situation and the risks involved. For further details, please consult our Terms of Service and Risk Disclosure.
