Ethereum News Today: Ethereum Treasury Firms Outperform ETFs With Steady ETH Accumulation

Standard Chartered’s Geoff Kendrick has highlighted the potential for Ethereum treasury firms to outperform U.S. spot Ethereum ETFs, citing equal ETH accumulation and stabilizing net asset value (NAV) multiples as key differentiators [1]. In his analysis, Kendrick notes that both ETFs and treasury firms have purchased 1.6% of ETH’s circulating supply since early June, indicating a shared institutional appetite for the asset [1]. However, he argues that Ethereum treasury firms offer greater efficiency, particularly due to their ability to provide direct exposure to ETH price appreciation and staking rewards [1].

One of the most notable examples is SharpLink Gaming (NASDAQ: SBET), an early and large ETH holder, which currently trades just above a NAV multiple of 1.0 [1]. According to Kendrick, this normalization of NAV multiples suggests a more balanced valuation and regulatory arbitrage opportunity, making these firms an attractive alternative to traditional ETF structures [1]. He further emphasized that, unlike ETFs, which have seen recent volatility in net inflows and outflows, treasury firms continue to accumulate ETH at a steady pace [1].

Over the past two months, Ethereum treasury companies have amassed over 2 million ETH, with projections suggesting an additional 10 million could follow [1]. In just one month, these firms added 545,000 ETH—valued at approximately $1.6 billion—demonstrating the scale of institutional interest [1]. SharpLink Gaming alone reportedly purchased 50,000 ETH during that period, bringing its total holdings to over 255,000 ETH [1]. This trend has led to a growing number of public companies holding significant amounts of ETH, with around 12 firms currently holding over 1 million ETH [1].

The performance of U.S. spot Ethereum ETFs has been more volatile by comparison. After a record $5.4 billion in inflows in July, these funds experienced a sharp reversal in early August [1]. On August 4, the sector recorded its largest single-day outflow of $465 million, with BlackRock’s ETHA accounting for the majority [1]. While the market partially recovered on August 5 with $73 million in net inflows, the instability highlights the challenges ETFs face in maintaining consistent investor confidence [1].

Kendrick’s comments come amid broader regulatory developments, including the SEC’s recent approval of in-kind creation and redemption mechanisms for crypto ETFs [1]. These changes aim to bring ETFs closer to traditional commodity structures, yet the continued volatility raises questions about their long-term appeal relative to alternative vehicles like treasury firms [1].

The financial analyst also pointed to upcoming earnings reports from Ethereum treasury firms, such as SharpLink Gaming on August 15, as potential indicators of the sector’s strength [1]. Such reports could provide further validation for the growing institutional adoption of ETH through direct ownership models [1].

In summary, Standard Chartered’s Geoff Kendrick suggests that Ethereum treasury firms are becoming a more viable and efficient investment vehicle compared to traditional ETFs [1]. With NAV multiples stabilizing and staking benefits accruing, these firms offer a compelling alternative for investors seeking exposure to Ethereum in a rapidly evolving market [1].

Source: [1] "Ethereum Funds Deemed More Valuable than U.S. ETFs" (https://coincu.com/analysis/ethereum-funds-vs-us-etfs/)