SharpLink Gaming (SBET), the Ethereum treasury backed by Ethereum co-founder Joe Lubin, is joining the Russell 2000 and Russell 3000 indexes later this month, potentially opening the stock to fresh institutional demand from index-tracking funds.
The inclusion will take effect after markets close on June 29 as part of FTSE Russell’s annual index reconstitution, the company said Tuesday.
Russell indexes are widely followed benchmarks for U.S. equities, with roughly $12 trillion in assets tied to them through passive and active investment strategies, the press release said. Membership in the Russell 2000, the benchmark for small-cap U.S. stocks, could increase trading volumes and institutional ownership.
SharpLink has emerged as one of the largest public holders of ether (ETH), part of a wave of companies adopting crypto treasury strategies last year modeled after the bitcoin holder Strategy (MSTR). Since then, most digital asset treasuries halted or pivoted to selling their assets as their stock prices cratered and crypto markets pulled back.
The firm held 872,984 ETH in early May, according to its latest quarterly earnings report, making it the second-largest public ETH treasury, trailing Bitmine’s 5.4 million ETH stash. SharpLink’s holding is worth roughly $1.8 billion at current prices, and it hasn’t reported any ETH purchases since October.
The stock has fallen about 95% from its speculative frenzy peak last May, when investors piled into crypto treasury firms during a broader rally in digital assets. Even so, the shares remain more than double their level before SharpLink pivoted to an Ethereum treasury strategy. The stock is down about 2% on Tuesday, similar to ETH’s price.
The index inclusion validates the company’s “institutional-grade ETH treasury strategy,” SharpLink CEO Joseph Chalom said, adding that it can strengthen the firm’s “access to capital markets.”