Geoffrey Kendrick, global head of digital asset research at Standard Chartered, pointed out that Ethereum financial companies are now 'very worth investing in', even more attractive than Ethereum spot ETFs.
Geoffrey Kendrick stated that the NAV multiple (market value divided by the value of ETH held) of Ethereum financial companies has normalized and is expected to remain above 1, reflecting that their asset valuations will be more resilient. He bluntly said: 'I don't see these companies' NAV multiples dropping below 1, because they actually have some degree of regulatory arbitrage space for investors.'
He added that compared to ETFs, these Ethereum financial companies can directly participate in staking and DeFi, not only benefiting from the price increase of Ethereum but also generating additional income and growth in the number of Ethereum per share; on the other hand, U.S. Ethereum spot ETFs are subject to regulatory restrictions, unable to stake or participate in DeFi, resulting in relatively lower investment efficiency.
Geoffrey Kendrick specifically named SharpLink Gaming (stock code: SBET) as a representative case. This company, co-founded by Ethereum co-founder Joe Lubin and supported by Consensys, is one of the first to incorporate Ethereum into its asset allocation, and its NAV multiple has fallen back to just above 1, indicating that the capital market's valuation of the company is gradually returning to rationality.
According to statistics from Geoffrey Kendrick, since June, Ethereum financial companies have cumulatively purchased about 1.6% of the circulating Ethereum on the market, roughly equivalent to the buying scale of Ethereum spot ETFs during the same period.
He had previously predicted that the scale of holdings in such companies is expected to increase to 10% of Ethereum's circulation, which is ten times the current level.
He further pointed out that institutional acceptance of using cryptocurrencies as reserve assets has significantly increased, coupled with Ethereum's ability to generate income and strong liquidity, which is expected to make Ethereum a new trend in corporate asset allocation.
So far, the Ethereum financial company with the largest holdings is BitMine (stock code: BMNR), which aims to eventually hold 5% of the total supply of Ethereum.
Geoffrey Kendrick estimates that more companies will join this competition in the future, and SharpLink will announce its second-quarter financial report on August 15, which will also become a key indicator for observing this asset class.
According to CoinGecko data, the trading price of Ethereum when writing this article was $3,722, up 2.8% in the past 24 hours.
This article is reprinted with permission from: (Block Client)
Original Title: (More Attractive than ETFs! Standard Chartered: Ethereum Financial Companies are 'Worth Investing')
Original Author: Block Girl MEL
'Standard Chartered: Ethereum Financial Companies are Worth Investing! Why are they more Attractive than ETFs?' This article was first published in 'Crypto City'
