Ethereum investing is evolving.Beyond simple price exposure,institutional players are now focusing on how they hold ETH.Recently,Standard Chartered’s global research team led by Geoffrey Kendrick signaled a growing preference for Ethereum treasury firms over traditional spot ETH ETFs a shift driven by staking yields,NAV premiums and DeFi access.
What Is the Ethereum Treasury Strategy?
This approach involves publicly traded companies that accumulate ETH on their balance sheets like BitMine Immersion Technologies,SharpLink Gaming and The Ether Machine. Unlike ETFs,these firms actively manage their holdings:staking ETH,participating in DeFi protocols and reinvesting yields.They offer direct exposure to ETH’s upside while generating additional returns through on chain activity.
Spot ETH ETFs:Pros and Limitations
Spot ETH ETFs such as those from BlackRock,Fidelity and Grayscale provide simple,regulated exposure to ETH price movements,with low fees and familiar structure for institutions and retail.However,they do not participate in staking or DeFi,missing out on yield opportunities.
The rapid ETF inflows reflect strong investor demand,but the model remains passive.
Standard Chartered’s Argument
Standard Chartered reports that corporate treasuries have already amassed ~1% of all ETH since early June 2025 matching spot ETF accumulation volumes.The bank projects these treasury holdings could grow to 10% of Ethereum’s total supply over time,driven by staking rewards (~3–5%) and DeFi flexibility.
Geoffrey Kendrick stated that treasury firms now trade at NAV multiples slightly above 1.0,providing regulatory arbitrage and active upside,making them “a better asset to buy than U.S. spot ETH ETFs.”
Ethereum Treasury Firms: Performance & Scale (2024–2025)
- BitMine Immersion Technologies (BMNR):Over 600,000 ETH (~$2.9 B),aiming for 5% of total supply.Its stock surged 480% YTD after pivoting into ETH treasury strategy.
- SharpLink Gaming & Ether Machine:Each holds hundreds of thousands of ETH;SharpLink’s NAV multiple peaked around 2.5 before moderating toward 1.0.
- Collective holdings:Treasury firms plus spot ETFs now hold over $32 B worth of ETH,with treasuries alone accounting for ~$10 B.
By mid 2025,treasury firms had dramatically narrowed the gap against ETFs,increasing corporate ETH from just $120 M in January to nearly $6 B by July.
Key Risks & Considerations
- Operational & market volatility:NAV multiples may fluctuate and stock returns are tied not only to ETH price but to corporate execution.
- DeFi & regulatory risk:Participation in DeFi can boost returns but increases complexity and regulatory exposure particularly around staking tax treatment and DeFi protocols.
- Liquidity:Smaller treasury firms may have less liquidity than ETFs;execution risk exists in stock markets.
- Corporate leverage:Some firms use debt to purchase ETH;price drops could stress balance sheets.
Despite these risks,dividends from staking can reach 3–5% and active DeFi strategies could push yields beyond 10% for competitive firms.
Conclusion: Is It the Smarter Bet?
For institutional investors seeking yield,flexibility and deeper ETH participation,Ethereum treasury firms offer compelling strategic advantages including staking income and NAV upside.
However,for passive investors or those prioritizing simplicity and regulation,spot ETH ETFs remain attractive due to convenience and liquidity.
Overall,the “smarter bet” depends on risk tolerance,investment horizon and desire for active ETH participation.But the rising trend is clear:treasury strategies are now mainstream.