Ethereum News Today: Ethereum Treasury Firms Outpace ETFs as NAV Stabilizes Above 1

Ethereum treasury firms are increasingly outpacing U.S.-based Ethereum ETFs as preferred investment options, according to Standard Chartered. This shift is attributed to the normalization of net asset value (NAV) multiples above 1, offering investors more direct exposure to ETH compared to the limited capabilities of ETFs [1]. The firm’s digital assets head, Geoffrey Kendrick, highlighted that these companies provide better ETH exposure due to their ability to engage in staking and decentralized finance (DeFi) activities, which ETFs cannot [1].

The appeal of Ethereum treasury firms lies in their multifaceted approach to generating returns. While ETFs remain restricted from participating in yield-generating methods such as staking or DeFi, treasury firms actively use these strategies to enhance their ETH-per-share growth [1]. This structural advantage enables treasury companies to provide higher returns relative to their ETF counterparts.

Since June, Ethereum treasury firms have acquired 1.6% of the total ETH supply, matching the buying pace of spot ETH ETFs [1]. This rapid accumulation indicates growing investor confidence and suggests that these firms are becoming key players in the Ethereum ecosystem. Among the leading companies, BitMine Immersion and SharpLink Gaming stand out, with holdings of over 833,100 ETH and 521,900 ETH, respectively. SharpLink, supported by Consensys and Ethereum co-founder Joe Lubin, has seen its NAV multiple stabilize just above 1 [1].

Regulatory arbitrage is another factor driving interest in Ethereum treasury firms. These companies operate outside the U.S. ETF framework, allowing them to access a broader range of yield-generating opportunities that are otherwise unavailable to ETFs [1]. This flexibility is viewed by investors as a strategic advantage in a changing investment landscape. The market’s recognition of this distinction has led to increased attention and capital flows into these firms.

Standard Chartered previously forecasted that treasury firms could eventually hold 10% of all ETH, a tenfold increase from current levels [1]. While this projection reflects the potential trajectory of these companies, it remains an analyst forecast and not a current market reality. As NAV multiples continue to stabilize above 1, Ethereum treasury firms are seen as more dynamic investments, with added advantages from staking and broader ETH exposure.

Source: [1] Ethereum Treasury Firms Outpace ETFs as Investment Picks, Says Standard Chartered (https://cryptonewsland.com/ethereum-treasury-firms-outpace-etfs-as-investment-picks-says-standard-chartered/)