- ETH treasury firms have acquired ~1.6% of supplies since June 1, matching spot ETFs.
- Treasury firms enable staking and DeFi access, offering yields unlike U.S. spot ETH ETFs.
- NAV multiples are stabilizing, boosting investor appeal for ETH treasury company stocks.
Ethereum treasury companies have purchased approximately 1.6% of the total ETH supply since June 1, matching spot ETFs. According to Standard Chartered, U.S.-listed ETH exchange-traded funds have also acquired a similar amount of ETH over the same timeframe. These purchases represent a growing institutional interest in Ethereum as a corporate reserve asset. Standard Chartered views this trend as a potential shift in how institutions are gaining exposure to ETH. The bank’s analysts suggest treasury firms may offer strategic advantages over ETFs.
NAV Multiples Normalize, Increasing Attractiveness
Standard Chartered’s Geoffrey Kendrick emphasized that treasury companies are more than passive holders of ETH. He said Ethereum treasury companies’ net asset value (NAV) multiples, market cap divided by the number of ETH held, have begun to stabilize above 1. SharpLink Gaming (SBET) is among the oldest companies in the ETH treasury, and its NAV multiple has fallen by half to around 1.0. This normalization means that SBET’s market cap is closely aligned with the value of its ETH assets. Kendrick said such a ratio makes these companies more “investable” for investors wanting efficient ETH price exposure.
Treasury firms may offer what Kendrick describes as “regulatory arbitrage opportunities” for institutional investors. Although not structured as funds, these companies provide a bridge to accessing ETH exposure in areas where funds are restricted by regulatory limitations on ETF-related products. NAV multiples at fair value mean that investors can get ETH at low premiums. This allows treasury firms to offer more direct and cost-effective ETH exposure than ETFs.
Unusual advantages built by staking and DeFi access
In contrast to the U.S. spot ETFs, the treasury companies are capable of staking ETH and engaging in DeFi protocols, which may provide shareholders with yield opportunities. Staking now yields about 3% yearly, and the treasury firms can invest or distribute it. They can also strategically use DeFi leverage to grow their ETH positions, provided proper risk management is in place. According to Kendrick, these active strategies offer greater long-term value than passive ETFs.
Kendrick noted that the ETH treasury firm model draws comparisons to the earlier trend of corporate Bitcoin accumulation. Companies like Strategy gained attention by acquiring large amounts of BTC for their balance sheets. Ethereum treasury firms are now emerging as the next iteration of this model, with potentially faster growth due to ETH’s native yield features. Kendrick added that the ability to earn returns on held assets may make ETH treasury firms more appealing in the long term.
Related: GameSquare Unveils $100M Ethereum Treasury for High Yields
SharpLink and BitMine Lead Market Interest
SharpLink Gaming, a casino game content developer backed by Ethereum co-founder Joe Lubin, has been highlighted as a significant figure in the industry. The ETH holdings and the normalized NAV multiple are generating more investor interest in the company. The report of the profits of SBET in the second quarter of the year (August 15) is likely to give more details on its approach towards ETH. BitMine Immersion Technologies (BMNR) also has the highest holdings of ETH treasury companies at the moment. The company has established an objective of increasing its holdings to at least 5% of all ETH supply.
More publicly traded companies are expected to implement similar strategies shortly. As the number of companies entering the ETH treasury space grows, the aggregate amount of ETH that is held by companies can grow drastically. Kendrick estimated that the treasury companies might have up to 10% of the entire supply of ETH in the future.
