Standard Chartered: Ethereum Treasury Company Now 'Very Investible,' Superior to U.S. Spot Ethereum ETF
BlockBeats News, August 7th, according to The Block, Geoffrey Kendrick, Global Head of Digital Assets Research at Standard Chartered Bank, stated that Ethereum Treasury Companies are now "very worthy of investment," making them more attractive to investors compared to a U.S. spot Ethereum ETF. The Net Asset Value (NAV) multiple of Ethereum Treasury Companies—meaning the market cap divided by the held ETH value—is currently "starting to normalize" and is expected to remain above 1, making it a better investment target than a U.S. spot ETH ETF. Kendrick said: "I see no reason why the NAV multiple should be below 1.0, as I believe these companies present investors with a regulatory arbitrage opportunity." With the normalization of the NAV multiple, Ethereum Treasury Companies can provide better opportunities for Ethereum price appreciation, staking rewards, and per-ETH growth compared to a U.S. spot ETH ETF, which currently cannot participate in staking or decentralized finance (DeFi).
Kendrick pointed out that since June, Ethereum fund management companies have bought 1.6% of all circulating ETH, equivalent to the buying pace of ETH ETFs during the same period. This update was released in its report last week, where he predicted that the ETH held by fund management companies could grow to 10% of all circulating ETH—equivalent to 10 times their holdings at the time.
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