Standard Chartered: ETH Treasury Stocks Now a Better Bet Than Spot ETFs
Companies that are adding ether (ETH) to their balance sheets are emerging as more attractive investment opportunities than ETH spot ETFs, according to a new analysis from Standard Chartered.
Geoff Kendrick, head of FX and digital assets research at the bank, said that firms purchasing ETH as part of their treasury strategy have not only gained investor attention due to their crypto holdings, but also because their overall financial profiles are becoming increasingly compelling.
“NAV multiples — the ratio of a company’s market cap to the value of its ETH holdings — are starting to normalize, making these treasury-focused companies more investable for those looking to gain exposure to ETH’s price upside,” Kendrick noted.This strategy, inspired by Michael Saylor’s well-known bitcoin play at MicroStrategy, has taken hold among publicly traded firms. As companies add ETH to their balance sheets, share prices often spike, boosting both market caps and NAV multiples. Although these valuations initially surged, they’re now settling to more sustainable levels.
Among the leaders in this trend are BitMine Immersion Technologies (BMNR) and SharpLink Gaming (SBET). SBET, in particular, saw its NAV multiple climb to around 2.5 at its peak before easing closer to 1.0 — indicating that the company’s market value is now roughly equal to its ETH holdings.
“We don’t expect these NAVs to fall below 1.0,” said Kendrick, pointing to what he called “regulatory arbitrage opportunities” that continue to give treasury-holding companies a unique advantage over traditional crypto ETFs.Since June, these treasury firms have collectively purchased about 1.6% of the total ETH supply, roughly the same amount acquired by U.S.-listed ETH spot ETFs over the same period. This parity, Kendrick argues, gives investors a choice — but he sees better value in the equities.
“With NAV multiples hovering just above 1.0, ETH treasury stocks currently offer a more compelling opportunity than U.S. spot ETH ETFs,” he added.Standard Chartered continues to maintain its year-end price target of $4,000 for ETH, which is currently trading at $3,652, up 2% over the past 24 hours.
