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Bitwise CIO Says Most Crypto Treasuries Will Trade at Discounts as ETFs Gain Favor

A valuation framework argues structural frictions overwhelm the limited ways these vehicles can grow crypto per share.

Overview

  • He cites illiquidity, operating costs, and execution risk as structural drags that pull market value below underlying crypto.
  • Only a few tactics can raise crypto per share, including issuing debt, lending tokens, writing options, or buying assets at a discount.
  • Expenses and risk compound over time, making sustained premiums rare even for well-run perpetual structures.
  • ETF specialists Nate Geraci and Eric Balchunas say spot and staking funds now offer cleaner exposure, with some calling them “DAT killers.”
  • Industry reporting estimates DATs oversee more than $130 billion, and scale is described as an edge for firms pursuing debt, lending, derivatives, and M&A.