Xiao Feng: Crypto ETF is good, but Digital Asset Treasury is better
BlockBeats News, August 28, Xiao Feng, Chairman and CEO of HashKey Group, stated today in Bitcoin Asia 2025 that the Digital Asset Treasury (DAT) may be the best way for crypto assets to move off-chain.
Xiao Feng elaborated on the four core advantages of DAT compared to ETF:
First, better liquidity. ETF creation and redemption processes take more time, while DAT helps investors transfer assets more conveniently and efficiently;
Second, higher price elasticity. DAT has a larger market value fluctuation and risk isolation feature, providing more arbitrage tools for institutions;
Third, a more reasonable leverage design. DAT companies offer leveraged financing structures, which, compared to the price growth of cryptocurrencies themselves, can bring higher premiums to investors;
Fourth, DAT has a built-in price protection mechanism. When the stock price drops by more than the net asset value held by the company, investors have the opportunity to buy Bitcoin or ETF at a discount. Such situations where the stock price is below the net asset value are quickly smoothed out by the market.
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