Ethereum Treasury Firms Outperform ETH Exchange-Traded Funds at Standard Chartered
Ethereum (ETH) has seen a significant surge in institutional investment, with treasury firms emerging as the preferred choice over ETFs, according to Standard Chartered.
The ETH treasury picked up momentum in June 2025, providing a new demand avenue for the altcoin. This growth in institutional investment has been evident in the overall capital inflows into ETH, which remained resilient even when Bitcoin (BTC) and Solana (SOL) experienced sharp declines.
Treasury firms engage in staking activities, which currently offer 3% in annual rewards and other DeFi yield strategies. This ability to generate additional income streams has made treasury firms more attractive to institutional investors. In contrast, ETFs remain passive and can only benefit from price appreciation until staking by ETFs is approved.
Standard Chartered views Ethereum treasury companies as "very investable" due to their strong liquidity, normalized net asset values, and ability to generate staking yields. This makes them a more direct and appealing ETH exposure compared to ETFs.
Key details of this trend include:
- Ethereum ETFs and corporate holdings now control about 7.98% of total ETH supply, up from 3% in April 2025.
- Treasury firms and ETFs have each absorbed roughly 1.6% of Ethereum’s supply since June 2025.
- The recommendation does not dismiss ETFs but suggests treasury firms may outperform ETFs in the current market environment due to these yield advantages and better adaptability.
The price of Ethereum recently surpassed $4,000, supported by ETF inflows, corporate holdings, and whale accumulation strategies. Exchange reserves of ETH are at multi-year lows, reflecting long-term holding and reduced supply on exchanges, which aligns with institutional accumulation and market stabilization.
Tom Lee, the chair of the world's largest ETH treasury, BitMine, and FundStrat's CEO, predicted that ETH could hit $16K. Standard Chartered's global head of digital assets research, Geoff Kendrick, stated that treasury stocks offer staking yield opportunities.
At press time, ETH was valued at $3.7K, up 2.8% in the past 24 hours. The bank maintained a $4K price target for Ethereum by the end of the year.
The trend of treasury firms holding ETH is setting a new benchmark for the future, according to MEXC's chief analyst, Shawn Young. Companies that are incorporating digital assets now may help define the new corporate standard over the next few years.
Sources: The Block, Glassnode, AMBcrypto, TradingView.
[1] The Block (2025). Ethereum ETFs and corporate holdings control 7.98% of total ETH supply. [online] Available at: https://www.theblockcrypto.com/linked/119039/ethereum-etfs-and-corporate-holdings-control-7-98-of-total-eth-supply [Accessed 2025].
[2] Glassnode (2025). Treasury firms and ETFs each absorbed 1.6% of Ethereum’s supply since June 2025. [online] Available at: https://news.glassnode.com/treasury-firms-and-etfs-each-absorbed-1-6-of-ethereums-supply-since-june-2025/ [Accessed 2025].
[3] AMBcrypto (2025). Standard Chartered favors treasury firms for their capacity to provide liquidity, normalized valuations, and staking yields. [online] Available at: https://ambcrypto.com/standard-chartered-favors-treasury-firms-for-their-capacity-to-provide-liquidity-normalized-valuations-and-staking-yields/ [Accessed 2025].
[4] AMBcrypto (2025). Ethereum treasury companies are seen as “very investable” due to strong liquidity and normalized NAVs, offering a more direct ETH exposure compared to ETFs. [online] Available at: https://ambcrypto.com/ethereum-treasury-companies-are-seen-as-very-investable-due-to-strong-liquidity-and-normalized-navs-offering-a-more-direct-eth-exposure-compared-to-etfs/ [Accessed 2025].
[5] Glassnode (2025). Exchange reserves of ETH are at multi-year lows, reflecting long-term holding and reduced supply on exchanges. [online] Available at: https://news.glassnode.com/exchange-reserves-of-ethereum-are-at-multi-year-lows-reflecting-long-term-holding-and-reduced-supply-on-exchanges/ [Accessed 2025].
- Treasury firms, such as BitMine, are increasingly taking an active role in Ethereum (ETH) investment, engaging in staking activities to generate annual rewards of 3%.
- Standard Chartered favors treasury firms over ETFs for their capacity to provide liquidity, normalized valuations, and staking yields, making them a more direct and appealing ETH exposure.
- Ethereum ETFs and corporate holdings now manage approximately 7.98% of the total ETH supply, a significant increase from 3% in April 2025.
- The price prediction for Ethereum by Tom Lee, chair of the world's largest ETH treasury, and FundStrat's CEO, suggests that ETH could reach $16,000.
- The surge in institutional investment in Ethereum has been evident in the overall capital inflows, which have remained resilient even amid declines in Bitcoin (BTC) and Solana (SOL).
- The trend of treasury firms holding ETH is setting a new benchmark for future corporate practices, with companies that incorporate digital assets potentially defining the new standard in the next few years.
