Ethereum is gaining prominence as a potential frontrunner amidst the rise of digital asset treasuries (DATs), according to analysts at Standard Chartered. Their insights suggest that Ethereum’s proof-of-stake blockchain is better poised to navigate increasing market pressures than both Bitcoin and Solana.
Geoffrey Kendrick, the bank’s global head of digital assets research, highlighted that ETH treasuries are likely to play a more significant role in driving demand for that token, especially as publicly listed companies facing the challenges of declining market valuations reevaluate their cryptocurrency holdings.
Digital asset treasuries have emerged as a defining investment trend, propelling crypto prices to new heights earlier this year. These firms typically operate on a model where they trade at a premium to their net asset value (mNAV) to fund further token purchases. However, in recent weeks, many DATs have seen their mNAVs drop below one, raising concerns about their capacity to sustain operations.
Kendrick predicts a shakeout in the digital asset treasury landscape, emphasizing that success will hinge on the ability to secure affordable funding, attract liquidity, and generate staking yields. He pointed out that both Ethereum and Solana have a competitive edge over Bitcoin in this regard due to their respective staking rewards.
The report notes a saturation of Bitcoin-focused firms, with nearly 90 companies now engaged in similar accumulation strategies, collectively holding over 150,000 BTC—six times their holdings at the beginning of the year. This scenario has led Standard Chartered to anticipate a trend toward consolidation in this space, as larger players increasingly acquire smaller DATs, which, however, may not contribute to new Bitcoin demand.
In contrast, Ethereum-focused treasuries are expanding, with companies accumulating approximately 3.1% of the cryptocurrency’s circulating supply since June. Notably, BitMine Immersion Technologies, the largest ETH-focused DAT listed on the NYSE American, holds more than two million ETH, roughly five percent of the total supply, and is still actively purchasing despite broader market pressures.
While Solana treasuries currently hold around 0.8% of the token’s supply, they are recognized as smaller and less developed, with questions regarding their regulatory treatment potentially impacting their growth. Kendrick indicated that these factors leave Ethereum in a more favorable position.
According to Standard Chartered’s findings, DATs currently manage four percent of all Bitcoin, compared to 3.1% of Ethereum and 0.8% of Solana. The bank views Ethereum treasuries as well-positioned to sustain demand, bolstered by staking yields and clearer regulatory frameworks.
Ethereum’s market performance reflects this optimism, trading at $4,492, down 2.6% in recent trading yet up over 150% since July, buoyed by institutional adoption and ETF inflows. Despite recent fluctuations, Kendrick reiterated that DAT activities are becoming a more favorable driver for Ethereum compared to Bitcoin and Solana.
Moreover, Standard Chartered believes Ethereum treasury firms may provide a more substantial upside than spot exchange-traded funds (ETFs). Kendrick noted that the NAV ratios of these treasury firms are stabilizing around 1.0, indicating their growing attractiveness to those seeking ETH exposure without direct ownership of cryptocurrency.
Noteworthy players in this space include SharpLink Gaming and BitMine Immersion Technologies, which have seen their NAV multiples adjust closer to parity. Collectively, Ethereum treasury firms now hold nearly five million ETH, about 4.1% of the circulating supply, closely rivaling the holdings of U.S.-listed spot ETFs, which manage approximately 6.69 million ETH, or 5.5% of the total supply. BlackRock’s ETHA leads this category with $17.25 billion in assets.
