The ETH treasury company is more attractive than the America ETF: Standard Chartered

Ethereum treasury companies are now becoming a more attractive investment option compared to spot Ethereum ETFs in America, according to Geoffrey Kendrick – Global Head of Digital Asset Research at Standard Chartered Bank.

In an email sharing with The Block, Kendrick stated that the net asset value multiple (NAV – market capitalization divided by the amount of ETH held ) by these companies "has begun to return to normal levels" and is expected to maintain above 1. This makes them a more valuable investment compared to spot ETH ETFs in America. "I see no reason for the NAV ratio to drop below 1, as these companies offer attractive legal arbitrage opportunities for investors," he said.

Kendrick stated that when the NAV ratio has stabilized, ETH treasury companies are providing better access to the price increase of Ether, staking rewards, and growth of Ether per share – things that spot ETFs in America cannot offer due to restrictions on participating in staking or using DeFi.

A prominent example is SharpLink Gaming (SBET), backed by Consensys and Ethereum co-founder Joe Lubin. This is the company that holds the oldest ETH among current treasuries. The NAV multiple of SBET has now adjusted to a level above 1.

Source: Standard CharteredSince June, Ethereum treasury companies have purchased an amount of ETH equivalent to 1.6% of the total supply – matching the buying rate of ETF funds during the same period. Last week, Kendrick predicted that the amount of ETH held by these companies could increase to 10% of the total supply – ten times the current amount.

Source: Standard CharteredHe also emphasized that these companies "have just begun" and possess outstanding growth potential compared to companies focused on Bitcoin, thanks to their ability to benefit from staking ( with a yield of about 3%) and using financial leverage in DeFi – something that ETFs, particularly in America, cannot do.

The growth of ETH treasury companies is said to be mirroring the trend previously seen with Bitcoin, when Strategy led the wave of businesses accumulating BTC. However, the growth rate of ETH companies is predicted to be faster, due to broader acceptance of cryptocurrency as a corporate reserve asset, along with the ability to generate yield from Ether.

Currently, BitMine (BMNR) is the largest holder of Ether, with a public goal of accumulating 5% of the total Ether supply. Kendrick predicts that more new companies will enter the market. He also mentioned that SharpLink's Q2 financial report – to be released on August 15 – may provide additional important clues about this rapidly growing type of business asset.

Thạch Sanh