According to PANews on August 28, Dr. Xiao Feng, Chairman and CEO of HashKey Group, stated during his keynote speech at Bitcoin Asia 2025 that DAT (Digital Asset Trust) may be the best way for crypto assets to transfer from on-chain to off-chain.
Dr. Xiao Feng elaborated in detail on the four core advantages of DAT over ETF:
First, it offers better liquidity. ETF subscriptions and redemptions require a considerable amount of time, while DAT facilitates a more convenient and efficient asset transfer for investors.
Second, it has higher price elasticity. DAT has significant market cap fluctuations and possesses risk isolation attributes, providing institutions with more arbitrage tools.
Third, the leverage design is more reasonable. DAT companies offer leveraged financing structures, allowing investors to achieve a higher premium compared to the price increase of cryptocurrencies themselves.
Fourth, DAT comes with a built-in downside protection mechanism. When the stock price drops beyond the net asset value of the company’s assets, investors get the opportunity to buy Bitcoin or ETF at a discount. This situation, where the stock price falls below the net asset value, will quickly be smoothed out by the market.
