ETH Treasury Companies vs Spot ETFs: Standard Chartered Highlights Why Public ETH-Holding Firms Are 'Very Investable'

Ethereum Treasury Firms Emerge As Smarter Bet Over Spot ETFs, Says Standard Chartered

Ethereum treasury companies are fast becoming a preferred choice for institutional exposure to ETH, outpacing U.S. spot Ethereum ETFs in both strategy and efficiency.

According to Geoffrey Kendrick, Standard Chartered’s global head of digital asset research, these companies have not only matched ETFs in terms of ETH accumulation but now offer a stronger investment case, thanks to their normalised net asset value (NAV) multiples and access to staking rewards.

Why NAV Multiples Are Making Treasury Firms More Attractive

Kendrick pointed to a key metric that sets Ethereum treasury companies apart: the NAV multiple — calculated by dividing a firm’s market cap by the ETH it holds.

Kendrick said in a note,

“Given NAV multiples are currently just above 1, I see the ETH treasury companies as a better asset to buy than the U.S. spot ETH ETFs.”

He stressed that the NAV multiple is unlikely to fall below 1, as these firms offer “regulatory arbitrage opportunities for investors.”

This stabilisation signals what Kendrick called a turning point.

With firms like SharpLink Gaming (SBET), an early player in the space backed by Consensys and Ethereum co-founder Joe Lubin, now trading just above a NAV multiple of 1.0, the market is showing early signs of confidence in this asset class.

Staking and DeFi Access Set Treasury Firms Apart From ETFs

One of the main distinctions is staking.

ETH ETFs in the U.S. are currently barred from earning staking rewards or tapping into decentralised finance protocols.

In contrast, Ethereum treasury companies actively stake their ETH to earn yield, often around 3%, while also deploying capital across DeFi to boost returns.

These features give treasury firms a significant yield advantage over their ETF counterparts, according to Kendrick.

He said,

“The normalisation of the NAV multiple makes the treasury companies now very investable for investors seeking access to ETH price appreciation, increasing ETH per share [...] and access to staking rewards.”

ETH Holdings Grow As Treasury Firms Match ETF Accumulation

Since June, Ethereum treasury companies and ETFs have each acquired 1.6% of the total ETH in circulation, according to Kendrick’s estimates.

That figure is expected to grow dramatically.

He previously predicted these treasury firms could eventually hold 10% of all ETH in existence, which is a tenfold increase from current levels.

BitMine Immersion Technologies (BMNR), for example, has publicly declared its aim to amass 5% of the entire ETH supply.

Already, BMNR and SBET report holding over 833,000 and 521,000 ETH respectively.

In the past month alone, these firms collectively added 545,000 ETH — valued at $1.6 billion.

ETF Inflows Volatile As Firms Press Ahead With ETH Buys

While Ethereum treasury firms continue their aggressive accumulation, U.S. ETFs have experienced turbulent inflows.

After drawing $5.4 billion in July, the sector saw a dramatic reversal at the start of August, including a record $465 million single-day outflow on 4 August.

BlackRock’s ETHA product alone accounted for $375 million of that.

A modest recovery followed, with $73 million in inflows on 5 August, led again by BlackRock.

Still, the swings highlight the short-term fragility of ETF structures in crypto markets, particularly when compared to the steady trajectory of ETH treasury firms.

All Eyes On SharpLink’s Earnings As Market Seeks Clarity

Investors and analysts alike are now looking to upcoming corporate disclosures for more signals.

SharpLink Gaming’s Q2 earnings report, due 15 August, is expected to offer deeper insights into how these ETH-heavy firms operate and perform financially.

Their results could help validate Ethereum treasury companies as more than just a temporary trend, especially as they position themselves as high-efficiency vehicles for institutional ETH exposure.

Are Ethereum Treasury Firms Built To Last In A Volatile Crypto Landscape?

Coinlive sees the emergence of Ethereum treasury firms as a new direction for institutional ETH investment.

Unlike ETFs, which remain tied to rigid regulatory frameworks and are slow to adapt, these companies are leveraging Ethereum’s native capabilities — staking, DeFi, and smart treasury models — to deliver more value per share.

But, will they hold up under pressure?

Regulatory ambiguity still surrounds how these firms should be classified, and their long-term strategy is tightly tied to Ethereum’s own trajectory.

If ETH fails to maintain upward momentum or staking yields drop, their value proposition may be challenged.

Still, their bold ambitions, including the potential to hold 10% of all ETH, point to a new institutional playbook that doesn’t rely on Wall Street’s traditional wrappers.

The success of this approach may ultimately be measured by the performance of early adopters like SBET in the months ahead.