According to Foresight News, Xiao Feng, Chairman and CEO of HashKey Group, stated during his keynote speech at Bitcoin Asia 2025 today that DAT (Digital Asset Treasury) may be the best way for crypto assets to transition from on-chain to off-chain.
Xiao Feng elaborated on the four core advantages of DAT compared to ETF: First, better liquidity. ETF subscriptions and redemptions take a considerable amount of time, whereas DAT helps investors transfer assets more conveniently and efficiently; Second, higher price elasticity. The market value of DAT fluctuates greatly and has risk isolation properties, providing institutions with more arbitrage tools; Third, a more reasonable leverage design. DAT companies offer leveraged financing structures, which can bring higher premiums to investors compared to the price growth of cryptocurrencies themselves; Fourth, DAT has a built-in downside protection mechanism. When the stock price drops beyond the net asset value held by the company, investors get the opportunity to buy Bitcoin or ETF at a discount. Such situations where the stock price falls below the net asset value will quickly be smoothed out by the market.