The world of crypto often feels like a high-stakes poker game, full of bluffs and big bets. But sometimes, a quiet shift happens in the background, one that changes the odds without much fanfare. We are seeing just such a move with Ethereum treasury companies. These firms, which hold large amounts of Ether (ETH) as a primary asset, are suddenly looking like a very smart play.
- These companies are managing their Ether holdings in ways that could make them a better investment than ETFs. They can also participate in staking and DeFi, which ETFs cannot.
- Geoffrey Kendrick believes these companies offer regulatory arbitrage opportunities. This means they can take advantage of differences in rules that might limit other investment vehicles.
- Ether treasury companies have collectively bought a substantial amount of Ether, matching the pace of Ether ETF purchases. This shows a serious appetite for Ether among these corporate players.
Standard Chartered’s global head of digital assets research, Geoffrey Kendrick, recently put a spotlight on this trend. He believes these companies are now “very investable.” In fact, he suggests they might even be a better bet than the much-talked-about U.S. spot Ethereum exchange traded funds, or ETFs.
It is a bold claim, especially when ETFs usually grab all the headlines. But Kendrick points to a few key reasons for his conviction. It comes down to how these companies manage their Ether holdings and what they can do with them.
One core idea is the “net asset value multiple.” Think of it as a company’s market value divided by the value of the Ether it holds. Kendrick says these multiples have started to settle into a good range. He expects them to stay above 1, meaning the market values these firms at least as much as their Ether stash, if not more.
Why would that be? Kendrick sees these firms as offering “regulatory arbitrage opportunities.” This means they can take advantage of differences in rules that might limit other investment vehicles. It is a subtle but powerful advantage in the crypto space.
Unlike U.S. spot ETH ETFs, these treasury companies can do more than just hold Ether. They can participate in staking, for instance. Staking is a way to earn rewards by locking up your Ether to help secure the network. It is like earning interest on your savings, but in the crypto world.
They can also get involved in decentralized finance, or DeFi. This opens up a whole universe of lending, borrowing, and trading opportunities. These are features that current U.S. spot ETH ETFs simply cannot offer. This difference gives the treasury companies a significant edge.
Kendrick specifically mentioned SharpLink Gaming, which trades under the ticker SBET. This company has backing from Consensys and Ethereum co-founder Joe Lubin. It is one of the older, larger Ether treasury firms. Its net asset value multiple has eased back to just above 1, which Kendrick sees as a positive sign.
The numbers tell an interesting story. Since June, Ethereum treasury companies have collectively bought 1.6% of all Ether in circulation. That is a substantial amount. What is more, it matches the pace of Ether ETF purchases over the same period. This shows a serious appetite for Ether among these corporate players.
Just last week, Kendrick had noted that these firms were “just getting started.” He also suggested they offer stronger upside potential than companies focused on Bitcoin treasuries. The ability to earn staking rewards, which are around 3%, and access DeFi options makes a big difference.
The rise of these Ether treasury firms reminds me a bit of the earlier Bitcoin trend. Remember when Strategy, formerly MicroStrategy, led a wave of corporate Bitcoin buying? This feels similar, but with an Ether twist.
Kendrick believes Ether treasury holdings could grow even faster than their Bitcoin counterparts. He attributes this to two main factors. First, there is greater institutional acceptance of crypto as a corporate reserve asset now. Second, Ether’s ability to generate yield through staking makes it particularly attractive.
BitMine, trading as BMNR, stands out as the largest Ether treasury company right now. It has a stated goal of accumulating 5% of all Ether. That is an ambitious target, but it shows the conviction these firms have in the asset.
Kendrick expects more companies to enter this space. He points to SharpLink’s upcoming Q2 earnings report on August 15 as a potential moment for more clarity. It could offer further insight into how this fast-growing asset class is developing.
Ether, the second-largest cryptocurrency by market value, has been trading around $3,650. It was up about 2% in the 24 hours leading up to the report. These corporate moves could certainly influence its price trajectory in the months ahead.
So, while everyone watches the ETF race, a different kind of player is quietly accumulating Ether. These treasury companies are building significant positions, offering a different path for investors. It is a reminder that in crypto, the most interesting developments often happen just out of the main spotlight.
