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Ethereum is likely to benefit more from the corporate digital asset treasury trend than Bitcoin and Solana going forward, according to Standard Chartered.

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Geoffrey Kendrick, global head of digital assets research at Standard Chartered, said in a Monday note that consolidation of Bitcoin digital asset treasuries appeared likely amid the recent collapse in multiples to net asset value. The metric is crucial to the ability of digital asset treasury firms to keep raising funds to buy digital assets without diluting investors.

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Kendrick said if mNAVs of some Bitcoin treasury firms fall substantially below 1, larger players like MicroStrategy (NASDAQ:MSTR) may acquire them. This could offer benefits for MicroStrategy shareholders by increasing their Bitcoin exposure at a low cost, he said. But he pointed out that it would have a net-zero market effect, as it would represent coin rotation rather than new net buying.

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Solana digital asset treasury firms, on the other hand, are less established than their Bitcoin and Solana counterparts and face growth hurdles as the Nasdaq looks to tighten oversight of cryptocurrency treasury firms, Kendrick said.

Trending: If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it?

​Kendrick sees a more limited chance of consolidation for Ethereum digital asset treasury companies as he expects staking to support their mNAVs. At the same time, he highlighted that Ethereum digital asset treasury firms were more established than their Solana counterparts before the Nasdaq increased oversight. He also added that the largest Ethereum treasury, Bitmine (NYSE:BMNR), which holds nearly $10 billion in Ethereum, has a pre-approved strategy and is not listed on the Nasdaq.

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“As a result, we see [digital asset treasuries] as being a more positive driver for ETH than BTC or SOL going forward,” he said.

Kendrick attributed the recent broad decline in the mNAVs of digital asset treasury firms to “market saturation.”

See Also: An EA Co-Founder Shapes This VC Backed Marketplace—Now You Can Invest in Gaming’s Next Big Platform

​He said that there are 89 firms imitating MicroStrategy’s playbook, up from 38 at the start of the year. He also said that the growth of other digital asset treasuries “has been nothing short of spectacular.” Specifically, he noted that Ethereum digital asset treasury firms have acquired over 3% of the Ethereum supply with over $16 billion in assets in just over three months.

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.

Ethereum is likely to benefit more from the corporate digital asset treasury trend than Bitcoin and Solana going forward, according to Standard Chartered.

​

Geoffrey Kendrick, global head of digital assets research at Standard Chartered, said in a Monday note that consolidation of Bitcoin digital asset treasuries appeared likely amid the recent collapse in multiples to net asset value. The metric is crucial to the ability of digital asset treasury firms to keep raising funds to buy digital assets without diluting investors.

Don’t Miss:

• ‘Scrolling To UBI’ — Deloitte’s #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.30/share.

• Kevin O’Leary Loves ‘Wonderful Recurring Cash Flows’ — These Small Industrial Assets Deliver Just That

​

Kendrick said if mNAVs of some Bitcoin treasury firms fall substantially below 1, larger players like MicroStrategy (NASDAQ:MSTR) may acquire them. This could offer benefits for MicroStrategy shareholders by increasing their Bitcoin exposure at a low cost, he said. But he pointed out that it would have a net-zero market effect, as it would represent coin rotation rather than new net buying.

​

Solana digital asset treasury firms, on the other hand, are less established than their Bitcoin and Solana counterparts and face growth hurdles as the Nasdaq looks to tighten oversight of cryptocurrency treasury firms, Kendrick said.

Trending: If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it?

​Kendrick sees a more limited chance of consolidation for Ethereum digital asset treasury companies as he expects staking to support their mNAVs. At the same time, he highlighted that Ethereum digital asset treasury firms were more established than their Solana counterparts before the Nasdaq increased oversight. He also added that the largest Ethereum treasury, Bitmine (NYSE:BMNR), which holds nearly $10 billion in Ethereum, has a pre-approved strategy and is not listed on the Nasdaq.

​

“As a result, we see [digital asset treasuries] as being a more positive driver for ETH than BTC or SOL going forward,” he said.

Kendrick attributed the recent broad decline in the mNAVs of digital asset treasury firms to “market saturation.”

See Also: An EA Co-Founder Shapes This VC Backed Marketplace—Now You Can Invest in Gaming’s Next Big Platform

​He said that there are 89 firms imitating MicroStrategy’s playbook, up from 38 at the start of the year. He also said that the growth of other digital asset treasuries “has been nothing short of spectacular.” Specifically, he noted that Ethereum digital asset treasury firms have acquired over 3% of the Ethereum supply with over $16 billion in assets in just over three months.