ETH ETFs Trail Corporate Holders in Growth Potential – Standard Chartered

Geoffrey Kendrick, Standard Chartered’s global head of digital assets research, argues that Ethereum treasury companies offer superior investment potential compared to U.S. spot Ethereum ETFs (exchange-traded funds). As he told The Block, this assessment stems from Ethereum treasury companies’ superior net asset value (NAV) metrics.

ETH Treasury Companies vs US Spot ETH ETFs 

ETH treasury companies are publicly traded firms holding substantial Ethereum reserves on their balance sheets, offering investors indirect ETH exposure plus additional benefits from business operations and diversified assets. Spot ETH ETFs are funds that directly hold Ethereum and trade on stock exchanges. When you invest in a spot ETH ETF, you’re essentially gaining exposure to ETH’s price without having to own or manage ETH yourself directly.

According to Kendrick, the advantage of ETH treasury companies is that they offer more ways to benefit from Ethereum. By holding ETH on their balance sheets, they allow investors to benefit from the token’s price appreciation, while also providing a pathway to participate in key Ethereum ecosystem features like staking rewards and decentralized finance (DeFi). Unlike ETF constrained by regulatory limitations, treasury companies actively deploy their ETH holdings through staking and DeFi protocols, generating additional yield streams that enhance shareholder value. 

CoinGecko data reveals 17 public Ethereum treasury companies collectively holding 1,749,470 ETH – valued at over $6.4 billion as of August 7, 2025. Bitmine, Sharplink, and Coinbase are the three largest ETH holders. Kendrick observes that Ethereum treasury companies trade at premiums above their ETH holdings’ value – a trend he expects to persist. Because of this, he believes they’re a better investment than U.S. spot ETH ETFs.

Institutional Ethereum Adoption Accelerates in 2025

2025 marked a pivotal year for institutional Ethereum adoption, driven by expanded investment vehicles, favorable regulatory developments, and significant ecosystem enhancements. The SEC’s late-2024 approval of spot Ethereum ETFs represented a watershed moment for institutional access. Among the largest funds are BlackRock’s iShares Ethereum Trust ETF (ticker: ETHA), the Grayscale Ethereum Trust ETF (ticker: ETHE), and Fidelity Ethereum Fund (ticker: FETH). 

Beyond ETFs, companies that hold Ethereum directly have become another popular option. Like Bitcoin treasury companies, these firms focus on generating yield through growth. According to Kendrick, ETH treasury holdings are expected to grow even faster with rising institutional crypto adoption.

Technical innovations also fuel Ethereum’s institutional appeal. May 2025’s Pectra upgrade significantly enhanced network throughput and transaction efficiency. Pectra has been credited with improving institutional confidence.

Despite strong fundamentals, ETH price action remains influenced by broader market dynamics and institutional capital flows. Ether currently trades at $3,600, declining 4% over the past 7 days.