A growing number of companies are including Ethereum (ETH) on their balance sheets, and investors are taking notice. According to Standard Chartered, these so-called “ETH treasury stocks” may provide more upside than the recently launched ETH spot ETFs. Here’s why they’re attracting attention.
Why are ETH-holding companies attracting investor interest?
Ethereum treasury stocks, companies that buy ETH for their balance sheets, are gaining traction. According to Standard Chartered analyst Geoff Kendrick, these firms may now be a better investment option than ETH spot exchange-traded funds (ETFs). Investors are no longer just looking at ETH holdings but also at the financial models of these companies, which are becoming more appealing.
Kendrick explains that these firms’ net asset value (NAV) multiples, essentially their market capitalization in relation to their ETH holdings, are beginning to normalize. This shift makes them “very investable” for anyone seeking Ethereum exposure outside of traditional ETFs.
How do NAV multiples affect ETH stock value?
Earlier this year, companies that added ETH to their treasury, similar to what MicroStrategy did with Bitcoin, saw a significant increase in stock prices. This resulted in inflated NAV multiples. However, these are now cooling off, bringing the stocks closer to their actual ETH value.
SharpLink Gaming (SBET) had a NAV multiple of approximately 2.5 at its peak. Today, it is closer to 1.0, implying that its stock price is nearly equal to the value of the ETH it owns. According to Kendrick, this level of parity represents a more balanced and sustainable investment.
Are treasury stocks comparable to ETFs in terms of ETH accumulation?
Yes, in fact, Kendrick notes that treasury firms and U.S.-listed ETH spot ETFs have each added nearly 2,000 ETH since June, accounting for approximately 1.6% of Ethereum’s circulating supply. So, from a pure exposure standpoint, both channels provide comparable access to ETH.
However, treasury stocks may have an advantage because they provide “regulatory arbitrage opportunities,” which adds another layer of potential upside.
With Ethereum trading around $3,652 and Standard Chartered maintaining a $4,000 year-end target, investors looking to profit from ETH’s growth may want to consider these ETH-holding companies as a viable, if not better, alternative to ETFs.
Also read: Is XRP the Best $500 Bet in Crypto Right Now? Momentum, Lawsuit Win, and Ledger Upgrades Say Maybe
