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

Kendrick emphasized that firms holding ETH as part of their treasury strategy are not only matching ETFs in terms of ETH accumulation — each acquiring around 1.6% of the total supply since June — but are also offering additional upside through more favorable market dynamics.

“The NAV multiples [market cap divided by ETH held] for ETH treasury companies are starting to normalize,” Kendrick noted, “which makes these companies increasingly investable for those looking to gain exposure to ETH price appreciation.”

Following a playbook similar to MicroStrategy’s high-profile Bitcoin accumulation strategy, several public companies have started purchasing ETH for their treasuries. This trend has driven initial surges in their stock prices and NAV multiples. While those valuations are now cooling off, Kendrick sees this as a healthy adjustment.

Among the notable examples are BitMine Immersion Technologies (BMNR) and SharpLink Gaming (SBET). The latter, in particular, had seen its NAV multiple peak near 2.5 and is now approaching 1.0 — meaning the company’s market cap is roughly equal to the value of its ETH holdings.

Kendrick believes there’s little reason for NAVs to fall below 1.0, pointing to the “regulatory arbitrage opportunity” these firms offer — allowing investors to gain ETH exposure through a publicly traded stock, which may carry fewer regulatory hurdles than direct crypto holdings.

Key Points:

• ETH Accumulation: Treasury companies and U.S.-listed ETH spot ETFs have each acquired around 1.6% of total ETH supply since June.
• NAV Multiples Normalizing: Early price surges are stabilizing, with valuations returning to more sustainable levels.
• Investment Thesis: Companies holding ETH now present a potentially better entry point than ETFs due to normalized NAVs and added upside from equity performance.
• Price Target: Standard Chartered maintains a year-end ETH price forecast of $4,000, with ETH currently trading at $3,652, up 2% in the last 24 hours.

“Given NAV multiples are currently just above 1, I see ETH treasury companies as a better buy than U.S. spot ETH ETFs,” Kendrick concluded.