Digital asset treasuries, or DATs, are set to become a preferred option for crypto investors compared with exchanged-traded funds (ETFs) according to Dr Xiao Feng.
Hashkey’s Dr Xiao Feng Sees Digital Asset Treasuries Beating ETFs
28 August 2025 - 16:31 CEST
Dr Feng, who holds a PhD in economics and is Chairman & CEO of HashKey Group, acknowledged the success to date of ETFs in his keynote speech at Bitcoin Asia. He singled out BlackRock’s IBIT BTC Digital Gold solution, which has about $76 billion worth of net assets, versus GLD SPDR Gold’s $100 billion. While the precious metal tracker used to be the only typical single-commodity ETF, Bitcoin is now an alternative, he noted.
DATs over ETFs
Investors seeking to tap crypto’s extraordinary popularity through traditional stock markets would be wise to compare the different way of valuing DATs and ETFs to gain efficiencies – ETF subscriptions and redemptions can take time to complete. Meanwhile, Feng also added that trading within the volatility around the market value (MMV) of a leading corporate treasury such as Michael Saylor’s firm Strategy, may be more lucrative that holding ETFs, which are typically evaluated on net asset value.
“DAT has better liquidity than ETF and this is the most important thing for any investor,” said Feng, who is also vice chairman and executive director of China Wanxiang Holding. DATs also offer better elasticity with investment options ranging from shares to convertible bonds and a leverage ratio, he said, referring to company’s ability to manage their borrowing and the higher returns that can ultimately lead to for its investors.
Finally, DATs have a “downside protection” provision. That usually means that when the stock price plunges below net asset value, there is a provision for shareholders to acquire the crypto at a discount.
Returns take time
However, it may take three to five years before investors see clearly superior returns from acquiring DATs and before it is more obvious that EFTs are better suited to a range of stocks versus crypto assets, according to Feng.
Hashkey Group, as an exchange, investor and trader of crypto is not suggesting an end to ETFs. Dr Feng was making an intellectual argument to help inform investors’ decisions.
