Ethereum Treasury Stocks ‘Better Buy’ Than ETH ETFs, Standard Chartered Says
Standard Chartered analyst Geoff Kendrick argues that companies accumulating ether (ETH) for their treasury strategies represent a more compelling investment than ETH spot exchange-traded funds (ETFs). His analysis centers on the evolving financial structure of these firms, which is gaining investor appeal.
Initially, the market capitalization of these companies, relative to their ETH holdings (NAV multiples), surged. However, these multiples are now returning to more normalized levels, approaching 1.0 for some firms. This means their market cap is only slightly exceeding the value of their ETH reserves. Kendrick cites SharpLink Gaming (SBET) as an example, whose NAV multiple peaked near 2.50 but has since declined to near 1.0. He believes this normalization makes these companies increasingly attractive.
He sees no reason for the NAV to fall below 1.0, emphasizing the “regulatory arbitrage opportunities” these treasury firms offer investors. Importantly, Kendrick highlights that since June, these companies have amassed a similar amount of ETH as U.S.-listed spot ETH ETFs. Both now hold roughly 1.6% of ETH’s circulating supply – approximately 2,000 ETH.
This parity in ETH holdings, coupled with the normalized NAV multiples, forms the basis of Kendrick’s preference for treasury stocks over ETFs. He asserts that with NAV multiples slightly above 1.0, ETH treasury companies provide a superior investment compared to US spot ETH ETFs. This assessment is further strengthened by Standard Chartered’s maintained year-end price target of $4,000 for ether, a significant upside from its current trading price of $3,652. The analyst’s projection suggests substantial potential for appreciation in both ETH itself and companies strategically accumulating it. The growing trend of companies mirroring Michael Saylor’s Bitcoin strategy, adding ETH to their balance sheets, further underscores the potential for growth in this sector. Companies like BitMine Immersion Technologies (BMNR) are also participating in this trend, experiencing initial surges in share price.
