Standard Chartered: Ethereum treasury companies are now "very worth investing in," better than US spot Ethereum ETFs

ChainCatcher news, according to The Block, Standard Chartered's global digital assets research head Geoffrey Kendrick stated that Ethereum treasury companies are now "very worth investing in," making them more attractive to investors compared to U.S. spot Ethereum ETFs. The net asset value (NAV) multiple of Ethereum treasury companies—i.e., market capitalization divided by the value of held ETH—has currently "started to normalize" and is expected to remain above 1, making it a better investment target than U.S. spot ETH ETFs. Kendrick stated, "I see no reason for the NAV multiple to be below 1, as I believe these companies provide investors with regulatory arbitrage opportunities." With the normalization of the NAV multiple, Ethereum treasury companies can offer better opportunities for Ethereum price appreciation, staking yields, and per-share ETH growth compared to U.S. spot ETH ETFs, which currently cannot participate in staking or decentralized finance (DeFi).

Kendrick pointed out that since June, Ethereum fund management companies have purchased 1.6% of all circulating ETH, which is comparable to the purchasing speed of ETH ETFs during the same period. This update was released in his report last week, where he predicted that ETH held by fund management companies could grow to 10% of all circulating ETH—equivalent to 10 times their holdings at that time.