ETH stock surge challenges ETFs as top investor pick

U.S. stocks linked to Ethereum treasuries surged in pre-market trading Thursday, driven by a 5.5% ETH stock surge and heightened on-chain activity. The rally reflects renewed investor enthusiasm and is reigniting debate over whether Ethereum exchange-traded funds (ETFs) are becoming the dominant strategy for crypto exposure.

Notable gainers include SharpLink Gaming (SBET), BitMine Immersion Technologies (BMNR), and BTCS Inc. (BTCS), which rose 8%, 8%, and 10% respectively. Other ETH-adjacent firms such as Coinbase (COIN), Circle (CRCL), MicroStrategy (MSTR), and Bit Digital (BTBT) also posted increases between 1.4% and 5.5%.

The ETH stock surge follows a broader uptrend that began on Wednesday, coinciding with renewed media attention and a viral interview featuring Fundstrat’s Tom Lee on the Bankless podcast. SharpLink co-CEO Joseph Chalom also gained traction with a statement highlighting the advantages of Ethereum over Bitcoin for corporate treasuries.

Ethereum treasuries eclipse ETFs in investor strategy

Publicly traded companies with large ETH holdings are now rivaling traditional ETFs in investor appeal. SBET and BMNR currently dominate Ethereum treasury holdings, with 522,000 ETH and 833,000 ETH respectively. Together, they account for more than 65% of the ETH held by publicly listed firms — 40.5% and 25.4% shares individually.

Ethereum’s price rise — reaching $3,818 in the past 24 hours — outpaced Bitcoin’s 2% increase over the same period. The ETH stock surge is being further fueled by robust blockchain activity: over 36 million ETH, or nearly 30% of the total supply, is now staked, and transaction volumes have reached a one-year high.

“The shift we’re witnessing suggests that ETH treasury stocks could offer more flexibility and upside than traditional ETF structures,” said Geoff Kendrick, Head of Crypto Research at Standard Chartered, in a note to clients.

“These companies aren’t just holding ETH — they’re leveraging it within business models, creating a hybrid of asset holding and operational growth.”

Regulatory clarity boosts investor confidence

Another key driver behind the ETH stock surge is improving regulatory clarity. The U.S. Securities and Exchange Commission (SEC) recently issued guidance indicating that some forms of liquid staking may not be classified as securities. This easing of compliance concerns has buoyed investor sentiment, particularly for firms like BitMine and SharpLink that incorporate staking as a core treasury strategy.

“Regulatory uncertainty has long plagued staking-centric strategies,” said Lisa Tran, Senior Policy Analyst at the Digital Asset Regulatory Forum. “The SEC’s latest stance opens the door for wider institutional participation in Ethereum, including through equity-based channels.”

SharpLink’s co-CEO Joseph Chalom echoed this sentiment in a recent interview, stating, “ETH is a productive asset in a productive platform, giving us far greater flexibility to bring investors value than BTC treasury companies.”

The firm’s recent integration with Injective has also improved its liquidity and market reach, strengthening its appeal to both retail and institutional investors during the ETH stock surge.

Ethereum’s narrative gains ground on Wall Street

The growing interest in ETH treasury stocks is part of a broader evolution in how Wall Street views digital assets. While ETFs provide passive exposure, firms like SharpLink and BitMine offer investors access to Ethereum through dynamic business strategies — blending treasury management, product development, and staking operations.

Standard Chartered’s Kendrick noted that both ETH ETFs and treasury firms have accumulated about 2,000 ETH each since June, representing roughly 1.6% of Ethereum’s circulating supply. However, treasury firms offer operational leverage and access to enterprise value growth, unlike their ETF counterparts.

The ETH stock surge, then, may be more than a short-term rally. It may signal a structural pivot in how crypto capital markets function, with equities increasingly viewed as a strategic play on Ethereum’s future.

Outlook: are ETFs losing their edge?

As Ethereum consolidates its position as more than a speculative asset — with productive staking use cases and scalable applications — the ETH stock surge is challenging the ETF model’s dominance. Investors are beginning to prioritize agility, liquidity, and upside — advantages more commonly found in treasury stocks.

While ETFs remain a popular vehicle, the data suggests a notable shift. With SBET and BMNR leading in treasury size, liquidity, and NAV efficiency, the case for Ethereum-aligned equities is growing stronger.

“Institutional capital is looking beyond passive products,” added Tran. “They want strategic exposure. And right now, ETH treasury stocks are delivering just that.”