The Head of Digital Research at Standard Chartered, Geoff Kendrick, believes Ethereum treasury stocks are a better investment option compared to US spot Ethereum ETFs.
In an exclusive statement shared with one of the leading media houses, Kendrick said Ethereum treasury stocks were now “very investable,” adding that they presented a stronger case for investors than ETH ETFs.
Direct Exposure to ETH
Kendrick emphasized that NAV multiples, referring to market capitalization divided by the value of the ETHER held, have started to normalize. For example, he stated that SharpLink Gaming, one of the pioneers and leading ETH holding companies, was now trading above a NAV multiple of 1.0. According to Kendrick, Ethereum treasury firms offered direct exposure to real-time ETH price, thereby increasing staking rewards and ETH per share. He stated:
“I see no reason for the NAV multiple to go below 1.0. These firms offer regulatory arbitrage for investors. Given NAV multiples are currently just above one, I see the ETH treasury companies as a better asset to buy than the US spot ETH ETFs.”
Ethereum Treasury Stocks Have Potential to Grow
During the media interview, Kendrick revealed that companies dealing with Ethereum treasury stocks bought at least 1.6% of all ETH tokens in circulation since June. He noted that the move matched the pace of Ethereum exchange-traded fund purchases during the same period.
Kendrick’s update came hot on the heels of another report that predicted ETH treasury stocks had the potential to grow to hold 10% of all the ETH in circulation, a figure that was 20 times their holdings at the time.
In a similar report issued last week, Kendrick opined that Ethereum treasury companies were just getting started and were poised to offer a more substantial upside compared to BTC-focused ones. He averred that the prediction resulted from the firms’ ability to earn holders staking rewards, besides giving access to decentralized finance (DeFi). These features were foreign in the world of ETFs, especially for investors based in the United States.
Potential to Begin a New Trend
Spot Ethereum ETFs have been the buzzword among investors since they were approved by the US Securities and Exchange Commission (SEC) and hailed as an investment milestone within the crypto space. However, Standard Chartered now believes that Ethereum treasury stocks were a better option.
The shift had the potential to begin a new trend where crypto-native companies with strong ETH positions could begin outperforming traditional investment instruments, including those that have been created to track the price of ETH.
Conclusion
The rise of Ethereum Treasury stocks mirrors the trend experienced by an earlier Bitcoin trend, where Michael Saylor’s Strategy led an institutional Bitcoin buying spree. The Standard Chartered official now believes Ethereum treasury stocks could grow faster, thanks to a broad institutional acceptance of cryptocurrencies and the ability of ETH to generate passive income.
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Summary
- Geoff Kendrick of Standard Chartered says that Ethereum treasury stocks are better buys than ETH ETFs.
- Kendrick stated that ETH accumulation and better NAV multiples give Ethereum an advantage, as it offers ETH exposure as well as staking rewards and regulatory arbitrage advantages.
- Ethereum treasury companies bought over 1.6% of all ETH in circulation since June, thereby matching the purchases of ETH ETFs.
Frequently Asked Questions
Why are companies choosing Ethereum stocks instead of ETH ETFs?
Public companies are selecting ETH due to its staking yield, smart contract capabilities, and DeFi ecosystem utility.
How do firms stake Ethereum directly from their treasuries?
Companies stake ETH directly via validators they run or use custodians like Coinbase Custody and Kiln to manage staking securely.
What types of companies are holding ETH?
Several firms are holding ETH in 2025. These include firms like iGaming providers, crypto exchanges, ASIC designers, wallet developers, and SPACs dedicated to Ethereum.
Glossary to Key Terms
ETH ETFs: Ethereum ETFs are investments tied to the expected price moves of Ether (ETH), the native cryptocurrency of the Ethereum blockchain.
Ethereum Treasury Companies: Led by companies like BitMine Immersion Technologies, these firms are the largest holders of Ether in treasuries with plans to acquire more of the cryptocurrency.
Reference
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