Companies that buy Ether (ETH) for their Treasury Strategy is a better purchase for investors than Eth Spot Exchange-Traded Funds (ETFS) said Standard Chartered Analyst Geoff Kendrick.
The analyst noted that these companies attract attention not only to their inventory but also to their financial structure, which is beginning to become attractive to investors.
“The NAV -Multipleres (market capital divided by the value of the ETH team) have now also begun to normalize for the Eth Treasury companies,” Kendrick said, adding that this dynamic is making the “treasury companies, now a lot of investors for investors seeking access to a price value.”
To buy ETH for the balance, after Michael Saylor’s Bitcoin (BTC) purchase strategy, has recently started. Many publicly traded companies have jumped on board and seen their stock prices originally wave, which increases their market capital and NAV multipling. Now their NAV -Multiplesses are coming down from their original top.
Some of the best companies that enjoy this market euphoria include Bitmine Immersion Technologies (BMNR) and Sharplink Gaming (SBet).
Among these companies, Kendrick Sharplink Gaming’s (sbet) Hav Multiple highlighted, which at its highest was about 2.50 and now comes down to a more normalized level of almost 1.0. This means that its market cap is only slightly higher than the value of its ETH stocks.
To be sure, the analyst said he sees no reason why NAV goes below 1.0, as these Treasury companies give investors “regulatory arbitrage options.”
Kendrick also highlighted that these Treasury companies have bought as much ETH as US-notified spot exchange traded funds (ETFs) since June.
Both groups now have about 1.6% of the total circulating ETH supply – just under 2,000 ETH – during that period, adding to his calls that both the treasury and ETF holders now give similar exposure to ETH, everything else is the same.
The combination of these two factors now adds to its dissertation that Eth Treasury plays is a better purchase option than ETFs. “Considering the NAV -Multipules are currently just over 1, I see Eth Treasury Companies as a better asset to buy than the American ETF -TFs,” he said.
Standard Chartered maintains its starting point for the end of the year of $ 4,000 for Ether. ETH is currently shopping for $ 3,652, an increase of 2% over the last 24 hours.
Read more: Ether Treasury Companies to finally own 10% of the supply: Standard Chartered
