DAT (Digital Asset Treasury) is evaluated by Dr. Xiao Feng, Chairman and CEO of HashKey Group, as the optimal method for transferring cryptocurrency assets from on-chain to off-chain, thanks to liquidity, price elasticity, leverage structure, and price protection mechanisms.
Speaking at Bitcoin Asia 2025 on August 28, 2025, Dr. Xiao Feng outlined four core advantages of DAT over ETFs, explaining why DAT can better support investors and institutions in asset conversion.
MAIN CONTENT
DAT is the bridge from on-chain to off-chain, facilitating effective cryptocurrency asset transfer.
DAT excels in liquidity and price elasticity, creating arbitrage tools for institutions.
DAT has a reasonable leverage structure and protection mechanism when prices fall.
What is DAT and why is it considered a bridge from on-chain to off-chain?
Short answer: According to Dr. Xiao Feng's speech at Bitcoin Asia 2025, DAT (Digital Asset Treasury) is a mechanism that facilitates the transfer of cryptocurrency assets from on-chain to off-chain more conveniently and efficiently than traditional solutions.
Analysis: DAT is designed to store and convert cryptocurrency assets without being entirely dependent on the lengthy registration and redemption processes of ETFs, allowing investors to reduce capital turnover time and increase trading flexibility between on-chain and off-chain environments.
DAT may be the best way to transfer cryptocurrency assets from on-chain to off-chain.
– Dr. Xiao Feng, Chairman and CEO of HashKey Group, speaking at Bitcoin Asia 2025, August 28, 2025
How does DAT have a liquidity advantage over ETFs?
Short answer: Dr. Xiao Feng emphasizes that DAT provides better liquidity because the asset transfer process is faster and more convenient than traditional ETF trading.
Analysis: ETFs often take time in the issuance, redemption, and centralized trading processes; DAT helps shorten the asset transfer time, reducing liquidity friction for investors and institutions wanting to move capital between the cryptocurrency market and traditional markets.
How does DAT create price elasticity and provide arbitrage tools?
Short answer: DAT has high market capitalization volatility and the ability to isolate risks, thus providing additional arbitrage measures for institutions, according to Dr. Xiao Feng's analysis.
Analysis: The price elasticity of DAT creates a volatility gap between the market price and the underlying asset price, helping institutions exploit price discrepancies; the risk isolation capability of the DAT structure also allows for better risk management in arbitrage strategies.
How does DAT have a leverage structure and price protection mechanism?
Short answer: DAT is described as having a reasonable leverage structure, providing leveraged funding and protection mechanisms when prices fall, helping investors reap higher rewards compared to the mere price increase of the cryptocurrency.
Analysis: DAT management companies provide a leveraged funding structure for investors, allowing for increased yields compared to the price increase of the underlying cryptocurrency; at the same time, DAT integrates a mechanism where when stock prices fall below net asset value, investors have the opportunity to buy Bitcoin or ETFs at a discount, helping to smooth price volatility in the market.
Quick comparison: DAT vs ETF
Criteria ETF DAT (Digital Asset Treasury) Liquidity The issuance/redemption process can be lengthy Faster, more convenient asset transfer Price elasticity Less market capitalization volatility related to ETF structure High market capitalization volatility, creating arbitrage opportunities Leverage Less or dependent on derivative products Leverage structure designed to increase premiums for investors Price protection No similar integrated mechanism Has a mechanism to buy the underlying asset at a discount when the stock price falls below NAV.
Frequently Asked Questions
What is the most important difference between DAT and ETFs?
According to Dr. Xiao Feng's speech at Bitcoin Asia 2025, the significant difference is that DAT optimizes liquidity and allows for faster asset transfer between on-chain and off-chain, while integrating leverage and price protection mechanisms.
Is DAT suitable for individual investors?
DAT is designed for both institutional and individual investors who need quick asset conversion and risk management; however, the leverage structure and complex products need to be clearly understood before participation.
How does DAT's price protection mechanism work?
When the price of DAT shares falls below net asset value, investors have the opportunity to buy Bitcoin or ETFs at a discount, allowing the market to quickly smooth out this disparity, according to the analysis in the speech.
Does DAT increase arbitrage opportunities for institutions?
Yes, DAT with price elasticity and risk isolation creates more arbitrage space for institutions compared to traditional ETFs, according to Dr. Xiao Feng's statement.
Source: https://tintucbitcoin.com/xiao-feng-dat-tot-hon-etf/
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