Bernstein says that Ethereum treasuries face liquidity risks.
The equity research and brokerage firm Bernstein revealed that Ethereum treasuries generate more digital assets than their Bitcoin-focused counterparts. According to the report, the treasuries generate staking rewards in addition to holding the virtual asset as a reserve asset.
On Monday, the analyst wrote in a note that Ethereum treasuries face challenges such as liquidity constraints and smart contract risks that differ from Bitcoin treasury models. The firm argued that Ethereum's proof-of-stake mechanism allows companies to stake assets for yields, but Bitcoin's proof-of-work structure allows entities to hold BTC without staking.