Standard Chartered analyst Geoffrey Kendrick asserts that investing in Ethereum treasury companies offers superior value compared to Ethereum exchange-traded funds (ETFs). In a Wednesday note, Kendrick highlighted that net asset value (NAV) multiples—market cap divided by ETH holdings—for firms like SharpLink Gaming (SBET) and BitMine Immersion Technologies (BMNR) have normalized to just above 1.0, down from peaks near 2.50. This alignment makes their shares highly attractive for investors seeking ETH price exposure and staking rewards.
These treasury companies have accumulated $1.9 billion and nearly $3 billion in ETH, respectively, mirroring MicroStrategy's Bitcoin strategy. Since June, they purchased 1% of all ETH, matching ETF inflows and collectively holding 1.6% of ETH's circulating supply. Kendrick emphasized this creates "regulatory arbitrage opportunities" absent in ETFs, stating, "ETH treasury companies are becoming more important in terms of flows than their BTC equivalents."
Ethereum traded at $3,652 during the report, with Standard Chartered maintaining a $4,000 year-end price target. A Myriad Markets prediction noted 50% of participants expect ETH to hit $5,000 by late 2025.