SharpLink Gaming (SBET), an Ethereum treasury firm supported by Ethereum co-founder Joe Lubin, is set to be included in the Russell 2000 and Russell 3000 indexes later this month. This inclusion, effective after market close on June 29, may attract new institutional investment from index-tracking funds.
The Russell indexes serve as significant benchmarks for U.S. equities, with approximately $12 trillion in assets linked to them through various investment strategies. Membership in the Russell 2000, which focuses on small-cap U.S. stocks, could lead to increased trading volumes and greater institutional ownership for SharpLink.
SharpLink has positioned itself as one of the largest public holders of ether (ETH), reflecting a trend among companies adopting cryptocurrency treasury strategies. The firm reported holding 872,984 ETH as of early May, making it the second-largest public ETH treasury, behind Bitmine’s 5.4 million ETH. At current market prices, SharpLink’s ETH holdings are valued at approximately $1.8 billion, although the firm has not made any ETH purchases since October.
Despite the potential for increased institutional interest, SharpLink’s stock has experienced a significant decline, falling about 95% from its peak last May. This drop occurred during a broader downturn in the cryptocurrency market, which saw many digital asset treasuries either halt or shift their strategies. Nevertheless, the current stock price remains more than double its value prior to the firm’s pivot to an Ethereum treasury strategy.
CEO Joseph Chalom remarked that the index inclusion affirms the company’s “institutional-grade ETH treasury strategy” and could enhance its access to capital markets. As the firm prepares for this transition, it remains to be seen how the market will respond to its new status within the Russell indexes.
SharpLink Gaming is set to join the Russell 2000 and 3000 indexes, which may attract institutional investment despite a significant decline in its stock value. The inclusion underscores the firm's substantial ether holdings and its strategic pivot towards cryptocurrency treasuries.