Standard Chartered: Ethereum Treasury Firms Now "Highly Investable," Outperforming US Spot Ethereum ETFs

According to ChainCatcher, citing The Block, Geoffrey Kendrick, Global Head of Digital Asset Research at Standard Chartered, stated that Ethereum treasury companies are now "very much worth investing in" and are more attractive to investors compared to US spot Ethereum ETFs. The net asset value (NAV) multiple of Ethereum treasury companies—calculated as market capitalization divided by the value of ETH held—has now "started to normalize" and is expected to remain above 1, making them a superior investment target compared to US spot ETH ETFs. Kendrick said, "I see no reason for the NAV multiple to be below 1, as I believe these companies offer investors regulatory arbitrage opportunities." As the NAV multiple normalizes, Ethereum treasury companies can provide better opportunities for Ethereum price appreciation, staking yields, and per-share ETH growth than US spot ETH ETFs—which currently cannot participate in staking or decentralized finance (DeFi).

Kendrick pointed out that since June, Ethereum asset management companies have purchased 1.6% of all circulating ETH, a pace comparable to that of ETH ETF purchases during the same period. This update was released in his report last week, where he predicted that the ETH held by asset management companies could grow to 10% of all circulating ETH—equivalent to a tenfold increase from their current holdings at that time.