Standard Chartered Bank: Ethereum fund management companies are currently "highly worthy of investment" and are superior to US spot ETH ETFs

PANews reported on August 7 that Geoffrey Kendrick, global head of digital asset research at Standard Chartered Bank, said that Ethereum fund management companies are currently "extremely worthy of investment" and are more worthy of purchase than US spot ETFs. Kendrick said that the net asset value (NAV) multiples of Ethereum fund management companies (that is, the market value divided by the value of ETH held) have now "begun to normalize" and are expected to remain above 1, making them more worthy of purchase than US spot ETH ETFs. He added that with the normalization of the net asset value multiples, ETH fund management companies are better able to take advantage of ETH price increases, staking rewards and the growth of ETH per share - this is different from the US spot ETH ETF, which is currently unable to stake or participate in DeFi.

Kendrick noted that Ethereum Money Managers have purchased 1.6% of all circulating ETH since June, matching the pace of purchases by ETH ETFs over the same period. This update follows his report from last week, in which he predicted that ETH Money Managers’ holdings could grow to 10% of all circulating ETH—a tenfold increase from their holdings at the time.