Standard Chartered Endorses Ethereum Treasury Firms Over US Spot ETFs

Standard Chartered's Head of Digital Assets Research, Geoff Kendrick, highlights that Ethereum treasury companies now offer a better investment opportunity than U.S. spot Ethereum ETFs due to their ability to generate staking rewards and participate in decentralized finance (DeFi) protocols. These firms have collectively acquired 1.6% of Ethereum’s circulating supply since June, matching the purchases made by ETFs, with projections indicating treasury firms could hold up to 10 million ETH in the future. Unlike ETFs, which cannot stake or engage in DeFi, treasury companies provide direct exposure to ETH price appreciation, staking rewards, and ETH-per-share growth, resulting in normalized net asset value (NAV) multiples above 1.0, exemplified by SharpLink Gaming (SBET). Additionally, active management strategies, such as using algorithmic capital allocation across high-yield liquidity pools and reinvesting collateralized ETH, are driving potential annualized returns of up to 40%, outpacing traditional ETF yields. This institutional movement into Ethereum treasury firms represents a significant trend towards more dynamic and yield-generating crypto investment vehicles, fueling what some analysts call a new wave of DeFi growth. Overall, the growing market confidence in these treasury companies marks a shift in investor preference towards assets that combine price upside with additional onchain income streams.