ETH Treasury Stocks vs ETFs: What’s the Better Buy?
ETH Treasury Companies: A More Attractive Choice Than ETFs for Investors?
According to the latest analysis from Geoff Kendrick – a strategist at Standard Chartered – publicly listed companies accumulating Ethereum (ETH) as part of their treasury strategy are becoming a more compelling investment opportunity than spot ETH exchange-traded funds (ETFs).
ETH Treasury – A Strategy Inspired by Michael Saylor's Bitcoin Playbook
The trend of corporations adding ETH to their balance sheets, emulating Michael Saylor’s famous Bitcoin treasury model, has gained strong momentum. Over recent months, numerous public companies have jumped into this strategy, triggering sharp increases in their stock prices. This initial surge significantly boosted their market capitalization and NAV multiples.
NAV Multiple = Market Cap / Value of ETH Held
However, Kendrick noted that these NAV multiples are now stabilizing at more reasonable levels, making these ETH-holding companies increasingly attractive to investors.
ETH Treasury vs. Spot ETH ETFs: A Direct Comparison
According to Standard Chartered, both ETH treasury companies and U.S.-listed spot ETH ETFs have acquired a similar amount of ETH since June, accounting for approximately 1.6% of Ethereum’s total circulating supply—nearly 2,000 ETH.
Some of the standout companies, such as BitMine Immersion Technologies (BMNR) and SharpLink Gaming (SBET), have seen their NAV multiples fall to around 1.0, meaning their market cap now closely reflects the actual value of the ETH they hold. This normalization presents several advantages for investors:
- No longer excessively overvalued
- Offers regulatory arbitrage opportunities
- Tradeable through traditional stock markets
- Example: SharpLink Gaming once had a NAV multiple of ~2.50, now back down to ~1.0
Why ETH Treasury Companies Are “Cheaper” Than ETFs
Kendrick emphasized:
“With NAV multiples currently just above 1, shares of ETH-holding companies are reasonably priced and offer better profit potential compared to spot ETH ETFs.”
Key reasons include:
- Spot ETH ETFs do not grant ownership of company equity or access to cash flow
- ETH treasury companies, on the other hand, generate core business revenue in addition to their ETH holdings
Standard Chartered Maintains $4,000 ETH Price Target
The bank continues to maintain its year-end price target for ETH at $4,000, while ETH is currently trading around $3,652, up 2% over the last 24 hours.
Conclusion: Are ETH Treasury Stocks the Smarter “Bang-for-Buck” Bet?
As institutional capital increasingly returns to crypto markets, investing in ETH treasury companies could serve as a strategic backdoor exposure to ETH price appreciation—while still benefiting from the company’s business fundamentals.
Investors seeking flexibility, leverage, and regulatory arbitrage may find stocks like SBET and BMNR a better alternative to holding ETFs directly.