Ethereum Treasuries vs ETFs: Why Investors Are Betting Big on ETH-Holding Companies

Ethereum is heating up again—but this time, not just because of its price. A new wave of investment excitement is being driven by treasury companies holding Ethereum (ETH) on their balance sheets, and according to experts, these firms may offer better returns than traditional ETH exchange-traded funds (ETFs).

Geoffrey Kendrick, the global head of digital asset research at Standard Chartered, says treasury companies with ETH holdings are now proving to be more attractive than US spot Ethereum ETFs. Why? It all comes down to net asset value (NAV) multiples, which are stabilizing above 1. That means these companies are actually trading at a premium to the value of their ETH holdings—signaling strong investor confidence.

"Treasury companies are investable, they offer upside from ETH price growth, staking rewards, and now the NAV multiples suggest real momentum," Kendrick explained.

Unlike ETFs in the U.S., which don’t offer staking, many Ethereum treasury companies are earning passive income by staking ETH or using it across decentralized finance (DeFi) protocols. This means investors in these companies are getting a piece of the staking pie—something traditional ETFs can't offer under current regulations.

One standout example is SharpLink Gaming (SBET). The company pivoted to an ETH treasury strategy in May after raising $425 million through a private placement. It now holds over 521,900 ETH and stakes nearly all of it—earning 929 ETH in rewards since launching its strategy in June. SharpLink has even filed to expand its fundraising capacity with the SEC to $6 billion.

But it's BitMine (BMNR) that leads the pack. Backed by investor Peter Thiel and supported by heavyweight shareholders like Bill Miller and Cathie Wood’s ARK Invest, BitMine disclosed holdings of over 833,100 ETH this week.

Altogether, Ethereum treasury companies now hold over 10.9 million ETH, matching the amount purchased by U.S. spot ETFs. As traditional ETH ETFs see record outflows, these treasury firms are stepping in with aggressive buying—adding fuel to Ethereum’s market activity.

Ethereum Price Watch: Can ETH Break Out—or Is a Pullback Coming?

Market signals for ETH are mixed. Currently trading near $3,600, ETH needs to stay above $3,220 and hold the 50-day Exponential Moving Average (EMA) to maintain a bullish setup. If successful, it could break past the descending trendline and test resistance near $3,900–$4,100.

However, a cautionary tale from December 2024 looms. Back then, ETH was also testing this zone, but a drop in Net Taker Volume and a cooling RSI preceded a sharp 66% crash. If similar conditions arise again—such as weakening buying volume and overbought indicators—ETH could fall back toward long-term support at $2,736 (50-week EMA) or even $2,333 (200-week EMA) by fall.