Standard Chartered Says Ethereum Treasury Firms Offer Better Value Than U.S. ETH ETFs

In recent months, publicly listed companies have increased their Ethereum holdings as part of treasury diversification amid growing digital asset adoption. Geoffrey Kendrick, head of digital asset research at Standard Chartered, says firms holding Ethereum are now more attractive investments than U.S.-listed Ethereum exchange-traded funds.

From Bitcoin to Ethereum: A Shift in Treasury Strategy

Bitcoin has long served as the go-to option for companies looking to integrate cryptocurrencies into their treasury plans. However, Ethereum is now attracting growing attention. Firms like SharpLink Gaming and BitMine Immersion Technologies are among those steadily increasing their Ethereum holdings, making the asset a key component of their corporate reserve strategy.

According to Kendrick, the current market is beginning to reflect a more measured outlook on these Ethereum-holding firms. This is reflected in the net asset value (NAV) multiple, a ratio comparing market value to ETH holdings. 

These NAV multiples are starting to normalize, settling into a more consistent range above 1. This suggests investors are valuing these firms at levels closely tied to the worth of the Ethereum they hold.

Why Ethereum-Backed Companies Hold an Edge Over ETFs

Kendrick believes NAV multiples won’t fall below 1.0, as these companies offer investors opportunities to benefit from regulatory differences. He stated:

I see no reason for the NAV multiple to go below 1.0 because I see these firms as providing regulatory arbitrage opportunities for investors

Geoffrey Kendrick, Standard Chartered’s Global Head of Digital Assets Research

Now that NAV multiples are stabilizing, so what advantages do Ethereum-holding companies offer?

• ETH treasury companies offer direct exposure to Ethereum’s price appreciation through their holdings.
• Publicly traded firms can stake ETH and earn yield, unlike ETFs that simply hold the asset passively.
• As ETH rises in value, the ETH-per-share ratio also improves, potentially lifting the stock’s long-term worth.
• In contrast, U.S. spot ETH ETFs are barred from staking or DeFi, limiting gains solely to ETH’s price movements.

Market Position and Accumulation Trends

The decision to allocate Ethereum on the balance sheet has, in many cases, positively influenced stock performance. Following these moves, several firms experienced sharp gains in market value as investor interest surged. More recently, though, those elevated NAV multiples have begun to ease, bringing company valuations back in line with more grounded financial norms.

Kendrick pointed to SharpLink Gaming as a case in point. The company previously traded at a NAV multiple of around 2.5, but that figure has gradually moved closer to 1.0. Its market cap now sits just slightly above the value of the ETH it holds.

Since June, Ethereum treasury firms have accumulated nearly as much ETH as all U.S.-listed Ethereum ETFs combined. Their collective holdings now account for about 1.6% of Ethereum’s total circulating supply—a meaningful share that points to the rising importance of such companies in the Ethereum ecosystem.

Kendrick expects this accumulation trend to gain momentum, especially as institutional attitudes toward digital assets evolve. With ETH offering a yield component through staking and broader network involvement, it is positioned as a more functional and productive asset than traditional alternatives like gold or cash reserves.

BitMine Immersion Technologies now stands as the leading Ethereum treasury holder among public companies, with 833,137 ETH valued at $2.95 billion. SharpLink has also continued its aggressive accumulation, purchasing 83,561 ETH last week at an average price of $3,634, worth $264.5 million. Its total holdings have now reached 521,939 ETH.