According to Kendrick, publicly listed companies like Sharplink Gaming (ticker: SBET) provide more effective exposure to Ethereum compared to ETFs.
Stocks or ETFs – Which Offers Better Ethereum Access?
Kendrick noted that since early June, Ethereum purchases by treasury firms have nearly matched those of ETFs—each accumulating around 1.6% of ETH’s circulating supply.
A key indicator is the NAV multiple (market capitalization divided by the value of ETH held), which has started to normalize. Sharplink Gaming, one of the largest ETH-holding firms, is now trading at just slightly above a NAV multiple of 1.0.
“I see no reason for NAV multiples to drop below 1.0. These firms offer regulatory arbitrage opportunities for investors. With NAVs currently just above one, I believe ETH-holding companies are a more attractive buy than U.S. spot ETH ETFs,” Kendrick said.
He also pointed out that these companies provide direct exposure to ETH’s price movements, increasing ETH per share and offering staking rewards.
Sharplink’s upcoming Q2 earnings report on August 15 will be closely watched, as it may provide key insights into this emerging asset class.
Ethereum Treasury Companies Ramping Up Accumulation
Since quietly emerging earlier this year, Ethereum treasury companies have already amassed over 2 million ETH, with Standard Chartered projecting that another 10 million ETH could be added in the future.
In the past month alone, they’ve acquired 545,000 ETH (around $1.6 billion). Sharplink Gaming reportedly bought 50,000 ETH during that period, bringing its total to more than 255,000 ETH.
This trend reflects a broader institutional shift. As of August, at least 12 publicly listed companies are holding more than 1 million ETH combined, including BitMine Immersion Technologies, Coinbase, and Bit Digital. Collectively, public firms now control around 0.83% of the total ETH supply, according to CoinGecko.
Ethereum Spot ETFs See Heavy Flows
Meanwhile, U.S. spot Ethereum ETFs have experienced significant volatility. After attracting $5.4 billion in inflows during July, ETFs saw sharp reversals:
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August 1: net outflows of $152 million
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August 4: record net outflows of $465 million, with BlackRock’s ETHA accounting for $375 million of that
The market partially recovered on August 5, as ETFs saw $73 million in net inflows. BlackRock led the rebound, while Grayscale’s funds faced modest redemptions.
Despite the turbulence, regulatory improvements continue. In late July, the SEC approved in-kind creation and redemption mechanisms for crypto ETFs, allowing them to operate more like traditional commodity ETFs.
