ETH treasury firms offer staking and DeFi yield advantages U.S. spot ETFs can’t, boosting their investment appeal.
NAV multiples for treasury firms now hold above 1, indicating stronger investor confidence and better ETH exposure.
ETH treasury firms like BitMine and SBET have matched ETF accumulation and may soon hold up to 10% of all ETH.
Ethereum treasury companies have overtaken U.S. spot ETH exchange-traded funds (ETFs) as a more attractive investment option, according to Standard Chartered. Geoffrey Kendrick, the bank’s global head of digital assets research, says these firms now offer greater value due to their improving net asset value (NAV) multiples and ability to earn yield, advantages currently unavailable to U.S.-based ETH ETFs.
Notably, NAV multiples for these companies, calculated by dividing their market cap by ETH holdings, have recently normalized above 1. Kendrick emphasizes that these companies, through regulatory arbitrage, provide better access to ETH appreciation, staking rewards, and ETH-per-share growth. In comparison, U.S. spot ETH ETFs remain limited, as they are not permitted to stake or engage in decentralized finance (DeFi) activities.
NAV Multiples Stabilize, Boosting Investment Appeal
As per Kendrick’s latest email to The Block, the normalization of NAV multiples is a pivotal development for Ethereum treasury companies. He said,
Given NAV multiples are currently just above one, I see the ETH treasury companies as a better asset to buy than the US spot ETH ETFs
He added that these firms are now “very investable” because they offer advantages ETFs currently cannot replicate. Their NAV multiples, which previously fluctuated, are now consistently holding above 1. This stability strengthens their attractiveness for investors looking for better exposure to Ethereum's price move and utility.
Kendrick also pointed to SharpLink Gaming (SBET), an ETH treasury backed by Consensys and Ethereum co-founder Joe Lubin. SBET, among the earliest of such firms, has seen its NAV multiple return to slightly above 1, reflecting renewed investor confidence.
ETH Holdings Climb as Firms Match ETF Accumulation
Since gaining strength in June, Ethereum treasury companies have purchased 1.6% of all ETH in circulation. This matches the accumulation pace of U.S. ETH ETFs during the same period.
Among the most notable are BitMine Immersion (BMNR) and SharpLink Gaming (SBET), which currently hold 833,100 and 521,900 ETH, respectively. BitMine aims to accumulate up to 5% of all ETH, as previously disclosed.
Kendrick projects that Ethereum treasury firms could eventually hold as much as 10% of all ether in circulation, a tenfold increase from earlier figures.
Staking and DeFi Access Drive Performance Gap
Unlike U.S. spot ETH ETFs, Ethereum treasury firms actively participate in staking and utilize DeFi strategies to enhance returns. Kendrick says these features position ETH treasury firms as superior investment assets, especially given staking yields near 3% and the additional leverage opportunities available. Kendrick reiterated,
These firms offer regulatory arbitrage for investors. Given NAV multiples are currently just above one, I see the ETH treasury companies as a better asset to buy than the US spot ETH ETFs
Ethereum treasury companies continue to gain strength as institutional interest in crypto reserve assets grows. With normalized NAV multiples, staking benefits, and expanding ETH holdings, their appeal now is above that of traditional U.S. ETH ETFs.
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