Ethereum Treasury Firms May Surpass U.S. ETH ETFs with Staking and DeFi Advantages

• ETH treasury firms offer staking and DeFi yield advantages U.S. spot ETFs can’t, boosting their investment appeal.

• NAV multiples for treasury firms now hold above 1, indicating stronger investor confidence and better ETH exposure.

• ETH treasury firms like BitMine and SBET have matched ETF accumulation and may soon hold up to 10% of all ETH.

Ethereum treasury firms are now more attractive than U.S. ETH ETFs, offering unique advantages that boost their investment appeal.

What Makes Ethereum Treasury Firms More Attractive?

Ethereum treasury firms have emerged as a more appealing investment option than U.S. ETH ETFs, primarily due to their ability to offer staking rewards and access to decentralized finance (DeFi) opportunities. According to Standard Chartered, these firms are now outperforming ETFs, which are limited in their capabilities.

How Do NAV Multiples Impact Investment Decisions?

As per Geoffrey Kendrick, the global head of digital assets research at Standard Chartered, the normalization of NAV multiples above 1 is a significant indicator of the investment appeal of Ethereum treasury companies. He stated, “Given NAV multiples are currently just above one, I see the ETH treasury companies as a better asset to buy than the U.S. spot ETH ETFs.” This reflects renewed investor confidence and a more stable investment landscape.

Kendrick emphasized that these treasury firms provide better access to ETH appreciation and staking rewards, which are currently unavailable to U.S. spot ETFs. This regulatory arbitrage positions them favorably in the market.

NAV Multiples Stabilize, Boosting Investment Appeal

The stabilization of NAV multiples is a pivotal development for Ethereum treasury companies. Kendrick noted that these firms are now “very investable” due to their advantages over ETFs. Their NAV multiples, which previously fluctuated, are now consistently holding above 1, enhancing their attractiveness for investors seeking better exposure to Ethereum’s price movements.

ETH Holdings Climb as Firms Match ETF Accumulation

Since June, Ethereum treasury companies have acquired 1.6% of all ETH in circulation, matching the accumulation pace of U.S. ETH ETFs. Notably, BitMine Immersion (BMNR) and SharpLink Gaming (SBET) currently hold 833,100 and 521,900 ETH, respectively. Kendrick projects that these firms could eventually hold as much as 10% of all ether in circulation.

Staking and DeFi Access Drive Performance Gap

Unlike U.S. spot ETH ETFs, Ethereum treasury firms actively engage in staking and leverage DeFi strategies to enhance returns. Kendrick reiterated, “These firms offer regulatory arbitrage for investors.” With staking yields nearing 3%, their appeal continues to grow as institutional interest in crypto reserve assets increases.

Key Takeaways

• ETH treasury firms are outperforming U.S. spot ETFs due to staking and DeFi access.
• Normalized NAV multiples indicate stronger investor confidence.
• Institutional interest in crypto reserve assets is driving growth in ETH treasury holdings.

Conclusion

In summary, Ethereum treasury firms have positioned themselves as superior investment options compared to U.S. ETH ETFs. With normalized NAV multiples, staking benefits, and increasing ETH holdings, their market appeal is set to grow further, making them a compelling choice for investors.