Ethereum treasury firms are a "better investment" than Ethereum ETFs: Standard Chartered | CoinDesk JAPAN

• Ethereum treasury companies like SharpLink are becoming increasingly attractive investment targets for institutional investors as the net asset value (NAV) multiple is returning to normal levels.
• Ethereum treasury companies and Ethereum ETFs (exchange-traded funds) purchased approximately 1.6% of Ethereum's supply since June.

Geoff Kendrick, an analyst at Standard Chartered, stated that companies purchasing Ethereum (ETH) as part of their treasury strategy are a better investment for investors than an Ethereum spot ETF.

According to Mr. Kendrick, the reason these companies are attracting the attention of investors lies not only in their held assets but also in their financial structure, which is beginning to become attractive to investors.

"The NAV multiples of these Ethereum treasury companies (the value of their market capitalization divided by the value of the Ethereum they hold) have begun to settle at a normal level," said Mr. Kendrick, adding that a situation is emerging where treasury companies are very easy to invest in for investors seeking access to rising Ethereum prices.

Following the Bitcoin purchasing strategy of Michael Saylor, the movement to incorporate cryptocurrencies into corporate balance sheets has recently accelerated.

Many publicly listed companies have jumped on this trend, and initially, stock prices surged, pushing up market capitalization and NAV multiples. However, that NAV multiple has started to decline from its initial peak.

Companies benefiting from this market euphoria include BitMine Immersion Technologies (BitMine Immersion Technologies)) and SharpLink Gaming (SharpLink Gaming)).

Mr. Kendrick particularly pointed out the NAV multiple of SharpLink Gaming as an example, noting that it was around 2.50 at its peak, but is now returning to a normal level close to 1.0. This means that the company's market capitalization is slightly above the value of its Ethereum holdings.

Mr. Kendrick stated that NAV would not fall below 1.0, citing that these treasury companies are providing investors with opportunities for "regulatory arbitrage (investments that exploit differences in regulatory environments across different regions or countries)."

Mr. Kendrick emphasized that these treasury companies and the US Ethereum spot ETF have purchased nearly the same amount of Ethereum since June.

Both groups have purchased approximately 1.6% of the total circulating supply, or nearly 2000 ETH, since June. This supports Mr. Kendrick's view that Ethereum treasury companies and Ethereum spot ETFs can achieve similar exposure to Ethereum, assuming all other conditions are the same.

For these reasons, Mr. Kendrick is reinforcing his view that Ethereum treasury companies represent a better investment opportunity than ETFs.

"Considering that the NAV ratio is currently slightly above 1, Kendrick stated that Ethereum treasury companies are viewed as better investment targets than the U.S. Ethereum spot ETF."

Standard Chartered has maintained its year-end price target for Ethereum at $4000. Ethereum has risen 2% in the past 24 hours and is trading at $3652 at the time of writing this article.