Ethereum News Today: Ethereum Treasury Firms Outpace ETFs With 3% Staking Yields and DeFi Exposure

Ethereum treasury companies are gaining traction as a preferred investment vehicle over U.S. spot ether (ETH) ETFs, according to a recent analysis by Standard Chartered. The bank highlights that these companies offer unique advantages, such as staking rewards and exposure to decentralized finance (DeFi) strategies, which are not available through traditional ETF structures [1].

Geoffrey Kendrick, head of digital assets research at Standard Chartered, points out that ether treasury firms can stake their ETH holdings to generate yields, estimated at around 3%, and also explore additional return opportunities through DeFi protocols. In contrast, U.S. spot ETH ETFs are limited to holding ETH without the ability to stake or engage in these decentralized financial activities [1]. This structural difference gives treasury companies a potential edge in generating returns for investors.

Since June, both ether treasury companies and U.S. spot ETH ETFs have each acquired approximately 1.6% of the total ether supply, indicating a similar pace of ETH accumulation [1]. However, the key distinction lies in the additional yield opportunities offered by treasury companies. Kendrick and his team suggest that, with regulatory advantages and the potential for compounded staking rewards, these firms could see more substantial growth compared to their ETF counterparts.

The bank’s research note also suggests that ether treasury companies may eventually hold up to 10% of all ether in circulation, a 10x increase from their current holdings [1]. This projection is based on the assumption that the current flow of capital into these firms continues. Additionally, Standard Chartered forecasts that, if this trend persists, ether could surpass the $4,000 level by the end of 2025, aligning with the bank’s price outlook.

The rise in institutional interest in crypto-based investment vehicles is further fueling the appeal of ether treasury companies. These firms are seen as more direct conduits to Ethereum’s underlying asset and offer a more dynamic return profile through staking and DeFi strategies [1]. As the crypto market continues to evolve, the role of Ethereum treasury companies is expected to become increasingly significant in the broader investment landscape.

Source: [1] Ethereum Treasury Firms May Surpass U.S. ETH ETFs with Staking and DeFi Advantages (https://en.coinotag.com/ethereum-treasury-firms-may-surpass-u-s-eth-etfs-with-staking-and-defi-advantages/)