Ethereum Treasury Companies Surpass ETFs in Buying Activity: Standard Chartered

Ethereum treasury companies have emerged as a compelling alternative to US-listed spot Ethereum ETFs, with both groups acquiring approximately 1.6% of the total ETH in circulation since June 1. Treasury firms like Sharplink SBET are increasingly attracting institutional interest due to their staking rewards, increasing ETH-per-share metrics, and regulatory arbitrage benefits. Their net asset value multiple has eased back to just above 1, suggesting they are fairly priced or undervalued.

Ethereum treasury companies have emerged as a compelling alternative to US-listed spot Ethereum ETFs, with both groups acquiring approximately 1.6% of the total ETH in circulation since June 1. Treasury firms like Sharplink (SBET) are increasingly attracting institutional interest due to their staking rewards, increasing ETH-per-share metrics, and regulatory arbitrage benefits. Their net asset value multiple has eased back to just above 1, suggesting they are fairly priced or undervalued.

SharpLink Gaming (NASDAQ: SBET), a major corporate Ethereum holder, reported significant growth in its ETH holdings for the week ending August 3, 2025. The company increased its total ETH holdings by 19% to 521,939 ETH, acquiring 83,561 ETH at an average price of $3,634. SharpLink's ETH Concentration metric, which measures ETH holdings per 1,000 diluted shares, increased to 3.66 from 3.40 week-over-week. Total staking rewards reached 929 ETH since the treasury strategy's launch on June 2, 2025. This strategy represents a corporate treasury approach similar to MicroStrategy's Bitcoin accumulation but focused on Ethereum's ecosystem.

The staking component of their strategy is beginning to generate meaningful rewards, with cumulative staking returns now at 929 ETH. This provides the company with a yield-generating mechanism on what would otherwise be static treasury assets. Management's statement about evaluating "debt, equity and equity-linked offerings" indicates SharpLink is exploring multiple financing avenues beyond just ATM issuance to accelerate ETH accumulation. This suggests the company may be considering bonds, convertible notes, or structured offerings to optimize its capital structure while minimizing shareholder dilution.

The trend of institutional accumulation has been supported by recent regulatory shifts. On Tuesday, the U.S. SEC approved in-kind redemptions for crypto ETFs, allowing authorized participants to exchange ETH and BTC directly for ETF shares, rather than cash, a move that aligns the structure of crypto funds with traditional markets and improves tax efficiency. Additionally, BlackRock received acknowledgment from the SEC for its 19b-4 filing to enable staking within its ETH ETF, setting the stage for a new layer of yield-generating exposure for institutional investors.

Standard Chartered's digital assets head Geoffrey Kendrick predicts ETH treasuries could grow to control as much as 10% of the total supply, citing yield-generating opportunities like staking and deeper DeFi integration. However, analysts at Bernstein caution that staking strategies, while lucrative, come with liquidity and smart contract risk.

Institutional demand for digital assets surged in July 2025, driven by record inflows into Bitcoin and Ethereum ETFs. U.S.-listed crypto ETFs collectively recorded $12.8 billion in net inflows for the month, the highest on record, with spot Ethereum ETFs capturing $5.43 billion—nearly a 369% increase from June. This outperformed Bitcoin ETFs, which attracted $6 billion in net inflows, marking their third-best month on record. BlackRock’s Ethereum ETF, which surpassed $10 billion in assets under management, became a benchmark for institutional adoption of the asset class.

The momentum in Ethereum ETFs was attributed to growing speculative activity and DeFi-related interest. Ethereum-based ETFs maintained strong inflow trends, drawing 13% more capital than Bitcoin ETFs over the past two months. Meanwhile, the broader market faced volatility, as macroeconomic headwinds—including weaker-than-expected jobs data—prompted warnings of potential corrections. Despite this, the inflows into Ethereum ETFs remained robust, signaling continued confidence in the asset’s long-term potential.

However, the market’s resilience was tested by a sharp outflow from Bitcoin ETFs. A single-day exodus of $812.25 million marked the second-largest outflow in the history of such products, highlighting the inherent volatility and sensitivity to macroeconomic signals. In contrast, Ethereum ETFs continued to attract capital, reinforcing their role as a leading asset in the ETF-driven crypto market.

The broader crypto market showed mixed signals, with the CoinDesk 20 Index reflecting a cooling trend in August. Nonetheless, the institutional demand demonstrated in July underscored the sector’s potential for sustained growth. If macroeconomic and regulatory conditions remain favorable, the momentum seen in the second half of 2025 could extend into the next quarter.

References:
[1] https://finance.yahoo.com/news/ethereum-etfs-treasury-companies-now-183103067.html
[2] https://www.ainvest.com/news/ethereum-news-today-ethereum-etfs-surge-5-43b-inflows-july-2025-2508/
[3] https://www.stocktitan.net/news/SBET/sharp-link-increases-total-eth-holdings-to-521-939-as-of-august-3-ybivzeoj6kyw.html