Institutional interest in Ethereum continues to rise, with treasury management firms rapidly accumulating ETH and outperforming spot exchange-traded funds (ETFs) in yield generation, according to new research from Standard Chartered.
The bank’s analysts say ETH treasury companies present a more attractive investment opportunity than U.S.-listed spot ETH ETFs. These firms have collectively acquired approximately 1.6% of Ethereum’s circulating supply since June—a figure comparable to the amount purchased by ETFs over the same period. However, treasury firms are able to boost returns through active strategies such as staking and participation in decentralized finance (DeFi) protocols, activities that ETFs are typically restricted from engaging in.
Several companies are deploying innovative approaches to enhance yields. GameSquare Holdings, for example, has partnered with Swiss firm Dialectic to invest in high-yield DeFi liquidity pools, targeting an annualized return of up to 14%. Meanwhile, BTCS employs a “flywheel strategy” using Aave to collateralize ETH, reinvesting the proceeds in additional DeFi pools. BTCS management claims this method can increase earnings by as much as 40% over conventional staking rewards.
Valuations of ETH treasury firms have also normalized, making them more attractive for traditional investors. Standard Chartered’s Geoffrey Kendrick noted that net asset value (NAV) multiples have returned to roughly 1.0 from prior peaks around 2.5. This indicates that the market capitalization of leading treasury firms now only slightly exceeds the value of their ETH holdings, narrowing what was previously a hefty premium.
Companies like SharpLink Gaming, which recently acquired over 83,000 ETH in a single week, illustrate the trend. The firm now holds more than 521,000 ETH, with its NAV multiple just above 1.0.
The sector is seeing increased momentum from institutional investors. BitMine Immersion Technologies, which only launched its ETH treasury strategy on June 30, now holds more than 833,000 ETH—valued at roughly $2.9 billion—making it the world’s largest ETH treasury. The firm has secured backing from prominent backers including Bill Miller III, Cathie Wood’s ARK Invest, and Peter Thiel’s Founders Fund.
Standard Chartered projects that corporate treasuries could eventually hold up to 10% of Ethereum’s total supply, a tenfold increase from current levels. The bank reiterated its year-end price target of $4,000 for ETH, which was trading at $3,652 at the time of report.
