Ethereum Treasury Firms Outpace ETFs As Investment Picks, Says Standard Chartered

Ethereum treasury firms hold NAV multiples above 1 and now offer better returns than US-based ETH ETFs.

These firms gain from staking and DeFi access while ETFs remain restricted from such yield-generating methods.

Treasury companies have matched ETH ETF buying by acquiring 1.6 percent of total ETH supply since June.

Ethereum treasury companies are becoming a stronger investment option than U.S.-based Ethereum ETFs. This comes as their net asset value (NAV) multiples continue to normalize above 1. Standard Chartered's digital assets head Geoffrey Kendrick said these companies now offer better exposure to ETH.

NAV multiples reflect the firm’s market cap divided by its ETH holdings. Ethereum treasury firms now maintain NAV multiples just above 1. This makes them more appealing for investors looking for direct ETH exposure.

Staking and DeFi Access Boost Appeal

These treasury companies gain value through ETH price growth, staking rewards, and decentralized finance returns. U.S. Ethereum ETFs, however, cannot stake ETH or participate in DeFi. This limits their yield potential compared to treasuries.

Given that treasury firms operate outside the U.S. ETF restrictions, they can use ETH more actively. They generate returns from staking and DeFi, offering better ETH-per-share growth.

ETH Holdings Rapidly Increase

Since June, Ethereum treasury companies have acquired 1.6% of the total ETH supply. This matches the buying pace of spot ETH ETFs. The steady rise in holdings shows growing confidence among investors.

BitMine Immersion and SharpLink Gaming lead in holdings. BitMine now holds over 833,100 ETH. SharpLink has secured more than 521,900 ETH. SharpLink’s NAV multiple has recently settled just above 1. The company is backed by Consensys and Ethereum co-founder Joe Lubin.

Regulatory Arbitrage Opportunities Stand Out

Ethereum treasury firms also offer regulatory advantages over the U.S. ETFs. By operating under different frameworks, these companies provide access that ETFs cannot match. Their structure allows them to take part in more yield-generating activities.

Investors see these firms as a way to bypass certain ETF limitations. This adds to their appeal in a shifting investment landscape. The market now recognizes this distinction and is reacting accordingly.

Ethereum Treasuries Expected to Grow

Standard Chartered’s analysis earlier predicted that treasury companies could eventually hold 10% of all ETH. That figure would mark a tenfold increase from current holdings. This projection suggests continued growth and influence of these companies.

As NAV multiples stabilize above 1, Ethereum treasury firms now look like a more dynamic investment. Their exposure to ETH and added yield from staking give them an edge over ETFs.