Standard Chartered: ETH ETFs Less Attractive Than Ethereum-Focused Equities

ETH Treasury Stocks Outperform ETFs as Institutional Buying Heats Up, Says Standard Chartered

According to Standard Chartered analyst Geoff Kendrick, companies that are acquiring ether (ETH) for their corporate treasuries present a more compelling investment opportunity than ETH spot exchange-traded funds (ETFs).

Kendrick emphasized that these treasury-focused firms are gaining investor interest not only due to their ETH holdings, but also because their financial structures are becoming increasingly attractive.

“NAV multiples (market cap divided by the value of ETH held) for ETH treasury companies have started to normalize,” Kendrick explained. “This shift is making these firms highly investable for those seeking exposure to ETH price appreciation.”

This trend mirrors the earlier strategy popularized by MicroStrategy’s Michael Saylor, who famously added bitcoin (BTC) to the company’s balance sheet. Now, a growing number of publicly traded companies are adopting a similar approach with ETH, leading to initial surges in share prices and valuations. However, those lofty NAV multiples are now coming back to earth.

Notable players in this space include BitMine Immersion Technologies (BMNR) and SharpLink Gaming (SBET). Kendrick specifically pointed to SBET’s NAV multiple, which peaked around 2.5 and has since declined to a more normalized level near 1.0 — meaning its market cap is now only slightly higher than the value of its ETH holdings.

“We don’t see NAVs dropping below 1.0,” Kendrick said, citing ongoing regulatory arbitrage opportunities that continue to benefit these treasury firms.

Significantly, Kendrick noted that ETH treasury companies have matched U.S.-listed ETH spot ETFs in terms of ETH accumulation. Since June, both groups have acquired about 1.6% of the total circulating ETH supply — equivalent to just under 2,000 ETH — suggesting that investors can gain similar exposure through either vehicle.

But with NAV multiples for treasury firms currently sitting just above 1.0, Kendrick believes they offer superior value.

“Given current NAV levels, ETH treasury companies look like a better buy than U.S. spot ETH ETFs,” he concluded.

Standard Chartered is holding firm on its year-end price target of $4,000 for ETH, which is currently trading at $3,652, up 2% in the past 24 hours.