Bitwise Executive Claims Crypto ETFs Could Offer Better Value Than Treasury-Based Firms

Jimmy Aki
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On November 5, Bitwise Chief Investment Officer Matt Hougan asserted that Digital Asset Treasuries (DATs) must adopt more sophisticated and deliberate strategies to justify their value proposition to investors. He cautioned that without such differentiation, capital may increasingly flow toward crypto exchange-traded funds (ETFs), which offer a simpler and potentially more efficient exposure.

A DAT is defined as the strategic acquisition and management of digital assets on a corporate balance sheet.

https://twitter.com/Matt_Hougan/status/1986153820997718239

Strategy DAT Approach Stands Out

Hougan explained in an X thread that the most basic evaluation of a DAT hinges on whether it executes a strategy meaningfully different from a passive fund. If a treasury’s activity is limited to buying and holding bitcoin, investors might find greater value in a straightforward Bitcoin ETF.

As an example, Strategy (formerly known as “Strategy”) was mentioned for executing a complex and intentional financial strategy.

While widely known for its substantial Bitcoin acquisitions, the company’s approach extends beyond simple accumulation. With approximately 641,205 BTC held against $8 billion in debt, a complex financial structure is maintained.

This significant equity, estimated at $56 billion, enables the issuance of convertible debt and preferred shares to acquire more bitcoin opportunistically.

This week, the company purchased 397 more BTC, raising its total holdings to 641,205 BTC.

Further methods for a DAT to distinguish itself were outlined in Hougan’s thread. These include the careful writing of covered calls, intentional participation in the Decentralized Finance (DeFi) ecosystem, and the structuring of smart lending practices. It was argued that projects executing these sophisticated strategies effectively may be rewarded over time.

Conversely, DAT groups that simply buy and hold an asset are more likely to trade at a discount to its underlying value.

Recent Market Shifts Raise Concerns About Crypto ETFs’ Appeal

This commentary arrives amid a shift in investor sentiment toward crypto ETFs.

While the Bitwise CIO argued that crypto ETFs may offer better value than firms that only hold cryptos, recent market activity has revealed a cooling enthusiasm.

According to Farside data, the Bitcoin ETFs sector has recorded five consecutive days of outflows. Between October 29 and November 4, there were $1.9 billion in redemptions.

Ethereum ETFs saw the same trend over that period, losing $837.4 million.

This shift may be tied to the tank in Bitcoin price as the coin fell to $98,000 before settling around the $103,000 mark. Bitcoin still trades 17.78% below its all-time high of $126,198 recorded on October 6, 2025.

Nonetheless, optimism continues to circulate. Michael Saylor, the CEO of Strategy, recently projected that Bitcoin could reach $150,000 per coin within two months. His outlook suggests that volatility does not erase long-term conviction.

The broader market now watches to see which groups will adapt, which will innovate, and which will fall behind.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.