In a thought-provoking analysis, Standard Chartered’s Geoff Kendrick recently asserted that companies holding ether (ETH) in their treasuries are a superior investment compared to ETH spot exchange-traded funds (ETFs). Investors seem to be taking notice of the financial structures of these firms, which are becoming increasingly appealing.
The Appeal of Treasury Stocks
Kendrick points out a significant shift: the net asset value (NAV) multiples—market capitalization divided by the value of ETH held—of these treasury companies are settling. “The NAV multiples have now also started to normalize for the ETH treasury companies,” Kendrick mentioned, suggesting that this newfound stability is making these firms attractive to investors eager for ETH price appreciation. This trend mirrors Michael Saylor’s much-publicized Bitcoin strategy, where buying BTC for the balance sheet spurred a number of public companies to follow suit. These firms initially saw their share prices soar, bolstering market cap and NAV multiples. However, as these multiples come off their peaks, a new equilibrium emerges. This mirrors the insights from Strategy Stock Price Could Nearly Double as Bitcoin Treasury Aims to Dominate Market, which discusses similar dynamics in the Bitcoin space.
Among the beneficiaries of this market enthusiasm are firms like BitMine Immersion Technologies (BMNR) and SharpLink Gaming (SBET). Kendrick highlights SharpLink Gaming, whose NAV multiple peaked at around 2.50 before normalizing closer to 1.0—suggesting its market cap is only slightly above the value of its ETH holdings. Crucially, Kendrick doesn’t foresee these NAV values dipping below 1.0, citing “regulatory arbitrage opportunities” as a protective factor for investors.
Market Dynamics and Investment Opportunities
Intriguingly, these treasury companies have been buying ETH at a pace rivaling U.S.-listed spot ETFs since June. Both entities now clutch around 1.6% of the ETH in circulation—just shy of 2,000 ETH—over this period, underscoring Kendrick’s thesis that these treasury stocks and ETFs offer comparable ETH exposure. “Given NAV multiples are currently just above 1, I see the ETH treasury companies as a better asset to buy than the US spot ETH ETFs,” Kendrick concluded. This insight is further cemented by Standard Chartered’s bullish year-end price target of $4,000 for ether. At the moment, ETH is trading at $3,652, marking a 2% increase over the past day.
Historical Context and Forward-Looking Implications
This evolving narrative draws on the broader crypto landscape where companies aligning their strategies with digital asset acquisition have seen transformative effects. Historical parallels with Bitcoin-centric strategies have illustrated the potential for substantial financial returns. The normalization of NAV multiples suggests a maturing market, inviting investors to reconsider traditional ETF routes. For more on the sustainability of corporate crypto investments, see The New Crypto Craze: Are Corporate Bitcoin Investments Sustainable?.
However, the road ahead is not without its hurdles. The dynamic interplay between regulatory landscapes and market forces continues to shape the crypto investment terrain, raising questions about the sustainability of this trend. Will these treasury stocks maintain their allure as market conditions shift, or will ETFs regain their luster?
As the year progresses, the crypto world will be watching closely. For now, the landscape is ripe with potential, brimming with both promise and uncertainty. Kendrick’s analysis may well serve as a bellwether for those navigating the complex waters of crypto investments.
Source
This article is based on: Ethereum Treasury Stocks ‘Better Buy’ Than ETH ETFs, Standard Chartered Says
Further Reading
Deepen your understanding with these related articles:
- Bitcoin treasuries add 630 BTC while ETFs shed $300M as price ranges
- PowerBank and Intellistake Announce Strategic Alliance to Pioneer Digital Currencies, including Bitcoin Treasury Integration and RWA Tokenization
- Cango posts ‘massive’ July Bitcoin haul, boosting corporate treasury
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
