Why does Standard Chartered think Ethereum could outperform Bitcoin?

Standard Chartered analyst Geoff Kendrick believes Ethereum could outperform Bitcoin because Ethereum's price has not kept pace with improving network activity and growing institutional interest. He argues that Ethereum's valuation is disconnected from its underlying fundamentals.

What happened after Strategy sold Bitcoin?

After Strategy disclosed a $2.5 million Bitcoin sale, Ethereum recorded one of its strongest daily gains relative to Bitcoin since 2024. Kendrick said Ethereum has outperformed Bitcoin on a daily basis only 23 times since the start of last year when measured during similar market conditions.

Why is Strategy's Bitcoin sale important for Ethereum investors?

Kendrick believes the sale highlighted a key difference between Bitcoin and Ethereum treasury strategies. Companies holding Ethereum can generate yield through staking, potentially reducing the need to sell assets to fund operations or raise cash.

What is the ETH/BTC ratio and why does it matter?

The ETH/BTC ratio measures Ethereum's value relative to Bitcoin. A rising ratio means Ethereum is outperforming Bitcoin, while a falling ratio means Bitcoin is gaining strength relative to Ethereum.

What is Standard Chartered's forecast for Ethereum by the end of 2025?

Standard Chartered recently raised its year-end Ethereum target to $4,000. The bank argues that Ethereum's market price does not fully reflect improving network metrics, stablecoin growth and increasing tokenisation activity.

What price could Ethereum reach if the ETH/BTC ratio improves?

Kendrick estimates the ETH/BTC ratio could climb to 0.04 by year-end. Assuming Bitcoin's price remains unchanged, he believes Ethereum could rise roughly 41% from around $1,900 to approximately $2,700.

Why does Standard Chartered see stablecoins as a catalyst for Ethereum?

Ethereum remains the dominant blockchain for many stablecoin and tokenisation projects. As financial institutions increasingly use stablecoins and tokenised assets, Ethereum could benefit from higher network usage and transaction demand.

How does BlackRock's involvement support the Ethereum investment case?

Kendrick noted that major asset managers such as BlackRock have recognised Ethereum's leadership in tokenisation and blockchain-based financial infrastructure. Growing institutional adoption could strengthen Ethereum's long-term position within the digital asset market.

Image for illustrative purposes only. Not a real photo.

Standard Chartered sees Ethereum gaining on Bitcoin

Written by Isaac FrancisPublished Jun 3, 2026, 4:20 AM

Ethereum could be poised to outperform Bitcoin after Strategy’s first Bitcoin sale since 2022 highlighted advantages in Ethereum’s staking-based treasury model, according to Standard Chartered.

The bank’s head of digital asset research, Geoff Kendrick, said Ethereum recorded one of its strongest daily gains against Bitcoin since 2024 after investors reacted to Strategy’s $2.5 million Bitcoin sale.

Kendrick argued Ethereum’s market value remains disconnected from improving network metrics and growing institutional demand for blockchain-based financial infrastructure.

He expects the ETH/BTC ratio to rise to 0.04 by the end of 2025, implying Ethereum could climb about 41% to $2,700 if Bitcoin’s price remains unchanged at roughly $67,300.

Standard Chartered last week raised its year-end Ethereum target to $4,000, citing stronger fundamentals and increasing adoption of stablecoins and tokenised assets across financial markets.

Kendrick said Ethereum’s ability to generate staking rewards gives companies holding the asset a source of income that may reduce the need to sell holdings compared with Bitcoin-focused treasury strategies.

The bullish outlook comes as Wall Street firms including BlackRock expand their focus on tokenisation and digital assets, although some analysts remain cautious that Bitcoin’s ETF-driven market structure could limit a broader altcoin rally.

At the time of reporting, Ethereum price was $1,837.92.