Standard Chartered Favors Ethereum-Exposed Stocks Over Spot ETH ETFs

ETH Treasury Stocks Outshining ETFs, Says Standard Chartered

Companies adding ether (ETH) to their corporate treasuries are becoming more attractive investment options than ETH spot exchange-traded funds (ETFs), according to Standard Chartered analyst Geoff Kendrick.

Kendrick noted that these treasury-focused firms are not only gaining attention for their crypto holdings, but also for their improving financial structures — making them increasingly appealing to investors seeking exposure to ETH.

“The NAV multiples — that’s market cap divided by the value of ETH held — are starting to normalize,” Kendrick said. “This shift is making ETH treasury companies a compelling buy for those looking to benefit from ETH’s price growth.”

Inspired by MicroStrategy’s Bitcoin playbook, more publicly listed companies have started holding ETH on their balance sheets. This trend has driven up their share prices, market caps, and NAV multiples. However, those elevated valuations are now beginning to settle, offering potentially better entry points.

Two standouts in this trend are BitMine Immersion Technologies (BMNR) and SharpLink Gaming (SBET). Kendrick pointed to SBET’s NAV multiple, which once reached 2.5 but has since fallen to around 1.0 — meaning its market value is now closely aligned with the value of its ETH holdings.

“We don’t see NAVs dropping below 1.0,” Kendrick added, noting that these companies still offer a strategic advantage through regulatory arbitrage, something ETFs can’t provide.

Both ETH treasury firms and U.S.-listed spot ETFs have acquired about 1.6% of the circulating ETH supply since June — a sign that both channels are accumulating at a similar pace. However, Kendrick believes the value proposition is stronger with treasury stocks.

“With NAV multiples now just slightly above 1.0, these companies offer better exposure to ETH than U.S. spot ETFs,” he said.

Standard Chartered is sticking with its year-end price target of $4,000 for ETH. As of today, ETH is trading at $3,652, up 2% in the last 24 hours.