Investors are exploring new ways to access Ethereum price growth confidently. According to a recent analysis, companies purchasing large amounts of ether for their corporate treasuries are proving even more appealing than exchange traded funds tracking ETH.
Geoff Kendrick at Standard Chartered has pointed to the growing financial sophistication of these treasury holding firms. Their share prices are not just driven by the underlying ether they hold, but by improved valuation multiples now coming closer to the value of their ETH reserves.
Several firms have recently adopted the approach of adding ether to their balance sheets, following the high profile strategy first taken with bitcoin by companies like MicroStrategy. Share prices for these public firms often experienced sharp increases upon news of their initial ETH purchases.
This early spike in market capitalization saw net asset value multiples jump, but those multiples are now normalizing. Investors no longer need to pay as steep a premium on stock prices relative to the sheer value of the ether owned by these companies.
A notable example is SharpLink Gaming which peaked at a NAV multiple of about 2.5 before drifting down near 1.0, indicating the company is primarily valued for its ether reserves. This situation may be attractive for investors seeking simple, regulated exposure to movements in ether prices.
Kendrick suggests that these balance sheet oriented companies offer another kind of advantage. Regulatory arbitrage is playing a role, as buying shares of corporate entities may provide reliable ownership of ether for those cautious about regulations surrounding direct ETH ownership or ETFs.
Since June, U.S. spot ether ETFs and these dedicated treasury companies have together acquired roughly 1.6 percent of all circulating ether. That comes to just under 2,000 ETH each, revealing these two distinct vehicles represent comparable slices of the ether market.
These overlapping buying patterns mean investors can now choose between two nearly equal ways of gaining exposure to ether prices. Yet the appeal of the treasury holding companies, for some, lies in their slightly simpler structure and the potential price to asset value just topping 1.0, avoiding the higher premiums that sometimes come with newer ETFs.
Kendrick highlighted that the price of ETH itself is currently around $3,652, having gained three percent in just the last day. Standard Chartered is holding firm on a year end forecast of four thousand dollars for ether, implying more potential room for these stocks and ETFs to climb.
This increasing overlap between what treasury companies own and what ETFs have purchased is notable for anyone watching ether’s broader adoption. Both investment routes now account for a sizable chunk of the token’s total supply.
A key takeaway is that investors are no longer limited to one traditional market path as ethereum gains mainstream interest. For many, buying shares in a public company holding a substantial amount of ETH on its balance sheet delivers both security and regulatory clarity.
For individuals and institutions looking to join this evolving landscape, there are opportunities to Start Cloud Mining and participate in the broader ecosystem, which continues to attract firm demand from both asset managers and private companies.
While spot ETFs remain a popular option, the normalization of NAV multiples in ETH-focused treasury companies is now driving a surge in attention. With their asset values and structures becoming easier to analyze, these companies could soon become a regular feature in diversified portfolios seeking crypto price appreciation.
More widely, this trend indicates a shift in how market players think about owning digital assets. The days of relying solely on centralized funds may soon give way to a more nuanced investment universe, where company shares represent an alternative, practical solution for ETH price exposure.
Conclusion
Market dynamics are evolving quickly as both treasury holding companies and ETFs expand their share of Ethereum’s total supply. With net asset value multiples inching closer to parity with the value of their ether reserves, these public companies offer an accessible path to cryptocurrency investment.
As ETH’s mainstream adoption progresses, those seeking to ride its potential growth have multiple robust routes to consider. The current landscape suggests that shares in these treasury companies are not just another way to invest in ETH—they may now be the more attractive solution for a new generation of investors.
Ewan’s fascination with cryptocurrency started through his curiosity about innovative technologies reshaping the financial world. Over the past four years, he has specialized in cloud mining and crypto asset management, diving deep into mining contracts, profitability analysis, and emerging trends. Ewan is dedicated to helping readers understand the technical and economic aspects of crypto mining, making complex information accessible and actionable.
