Crypto Treasuries Are Fading—And Staking ETFs Will 'Eat Their Lunch': SOL Strategies CEO

Canadian-based SOL Strategies is simply a publically traded Solana-centric institution that has stockpiled the network’s autochthonal token—but it doesn’t privation to beryllium confused with the increasing database of integer plus treasuries (or DATs) that person simply focused connected accumulating SOL, the network’s autochthonal token. 

“Our thesis is that there's nary sustainable marketplace for integer plus treasuries,” SOL Strategies Interim CEO Michael Hubbard told Decrypt. “That's not an absorbing concern model.”

“They're a proxy fiscal engineering play that mostly was driven by short-term hype. I astir privation to accidental greed, but that seems a spot strong,” helium added. "I deliberation we'll spot 1 oregon 2 semipermanent sustainable oregon palmy DATs that benignant of power the narrative, that thrust the theme, but staking ETFs are going to devour their lunch.” 

Hubbard said that portion the archetypal DAT thesis of providing vulnerability to antecedently uninvestible assets—either based connected geography oregon different restrictions—was a large thesis, it has mislaid its luster. 

“Now we person ETFs that supply the aforesaid level of exposure, but ETFs are acold much regulated and person a precise known model and protections astir that,” helium added.

ETFs besides travel from known issuers with controlled and defined expenses, helium added, portion DATs tin person analyzable equilibrium sheets, warrant overhangs, indebtedness converts, and shares successful backstage placements that haven’t yet been registered for resale.

“The worth spread that DATs are filling is narrowing precise rapidly,” said Hubbard.

Staking ETFs adhd a further payment for investors by letting them get a stock of web staking rewards for proof-of-stake assets similar Solana and Ethereum. The precocious launched Bitwise Solana Staking ETF has seen zero days of outflows since launching successful precocious October, suggesting coagulated request for some Solana and staking-enhanced funds.

SOL Strategies was arguably the archetypal Solana treasury firm, rebranding from Cypherpunk Holdings successful September 2024 to perpetrate to a absorption connected the increasing layer-1 web and its underlying token, SOL. 

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But the institution maintains that it’s much than a DAT, alternatively adopting the DAT++ moniker that lends credence to the brand’s validator business. 

Hubbard, who took implicit arsenic interim CEO successful September with the departure of Leah Wald, is focused connected ensuring shareholders and prospective investors are alert of it. 

“What we're truly trying to convey to the marketplace close present is our absorption is to seizure the worth of the economy, not the currency,” said Hubbard, speaking astir the firm’s absorption connected the maturation of the Solana web and activity, versus conscionable the terms of the token.