Standard Chartered: Ethereum Fund Management Firms Are Outperforming US Spot ETH ETFs

Key Takeaways:Ethereum-focused fund managers are now considered more attractive investments than U.S. spot ETH ETFs, according to Standard Chartered.Fund NAV premiums have normalized and are expected to remain above 1.0, suggesting rising investor confidence.Ethereum fund managers have acquired 1.6% of ETH supply since June, matching ETF inflow rates.Holdings could grow to 10% of circulating ETH, highlighting institutional accumulation.Standard Chartered Sees Greater Value in Ethereum Fund Managers Over Spot ETFsGeoffrey Kendrick, global head of digital asset research at Standard Chartered Bank, believes Ethereum fund management companies currently offer superior investment value compared to U.S. spot Ethereum ETFs.In recent comments reported by PANews, Kendrick emphasized that Ethereum fund managers are not only undervalued relative to spot ETFs, but also more aggressive in their ETH acquisition strategies.NAV Multiples Signal Strong Market PositioningKendrick pointed to the normalization of net asset value (NAV) multiples among leading Ethereum fund management firms, noting that valuations have stabilized above the key 1.0 threshold. This trend reflects renewed investor confidence and could signal growing institutional preference for actively managed ETH exposure over passive ETF alternatives.Ethereum Fund Managers Rival ETFs in AccumulationSince June 2025, Ethereum fund managers have accumulated 1.6% of the total circulating ETH supply, closely matching the inflow rate of recently approved U.S. spot ETH ETFs. Kendrick projects that, at current pace, these funds could ultimately control up to 10% of ETH in circulation—a significant milestone for Ethereum’s institutional landscape.Investment Outlook: Active Funds May Lead ETH Institutional AdoptionWhile spot ETFs have driven much of Ethereum’s 2025 price action, Kendrick's analysis highlights a parallel institutional strategy focused on direct ETH custody and flexible management structures. These characteristics make fund management platforms potentially more agile and profitable than traditional ETFs, particularly during periods of market volatility or shifting regulatory frameworks.Standard Chartered’s endorsement of Ethereum fund management firms marks a noteworthy divergence from ETF-focused narratives. As NAV premiums rise and ETH holdings grow, these funds may become core vehicles for long-term institutional ETH exposure, offering investors an alternative to passive ETF investments with potentially higher returns.