ETH Treasury Stocks Offer More Upside Than ETFs, Says Standard Chartered
Companies buying ether (ETH) for their corporate treasuries are becoming a more attractive investment than ETH spot exchange-traded funds (ETFs), according to Geoff Kendrick, Head of Crypto Research at Standard Chartered.
Kendrick highlighted that these firms are not only gaining attention due to their ETH holdings but also because their overall financial models are becoming more favorable to investors.
“NAV multiples — the ratio of a company’s market cap to the value of its ETH holdings — have started to normalize,” Kendrick said. “This makes ETH treasury companies increasingly investable for those seeking ETH exposure.”
Inspired by the strategy made popular by Michael Saylor’s bitcoin purchases for MicroStrategy, several publicly traded companies have adopted similar tactics with ether. Many saw their share prices surge initially as they acquired ETH, pushing up their NAV multiples. However, these valuations are now stabilizing at more sustainable levels.
Among the companies leading this trend are BitMine Immersion Technologies (BMNR) and SharpLink Gaming (SBET). Kendrick pointed to SBET, whose NAV multiple peaked at around 2.5 before falling to approximately 1.0 — meaning the company’s market cap is now roughly equal to the value of its ETH holdings.
“There’s little reason for NAV multiples to fall below 1.0,” Kendrick noted, adding that ETH treasury companies offer “regulatory arbitrage opportunities” that ETFs cannot, further enhancing their investment appeal.
Since June, both ETH treasury companies and U.S.-listed spot ETFs have accumulated roughly 1.6% of the total ETH supply — just under 2,000 ETH — indicating that both types of vehicles provide similar exposure to ETH’s price movements.
However, with treasury companies now trading at near-par value to their ETH holdings, Kendrick argues that they currently offer better value than ETFs.
“With NAV multiples just above 1.0, ETH treasury stocks are a more attractive buy than U.S. spot ETFs,” he said.
Standard Chartered is maintaining its year-end ETH price target of $4,000. As of now, ETH is trading at $3,652, up 2% in the last 24 hours.
