Andrew Kang, a leading cryptocurrency market analyst and partner at Crypto Investment Platform Mechanims Capital, warns that Ethereum Treasury Strategy Firms could go the same way as ETH Exchange-Traded Funds (ETFS).
In a recent post on X, he compared the expected fate of an ETH Treasury company, which was approved by US regulators last year to the fate of a much-exaggerated spot ETH ETF. Despite early market optimism, early ETF trading volumes were modest at best, giving way to the harsh market reality.
It is in parallel with the launch of the overwhelming spot ETH ETF
This has led many to reevaluate their expectations of institutional demands. As Kan wrote, “Demand expectations (AR) are much higher than they are real.In other words, companies adopting the ETH financial strategy could experience similar disillusionment following the adoption of Spot ETH ETFs.
In addition to extreme hype and unperformance, he told readers, “Expect most people to trade with a huge NAV discount by next year.This made him mention Net Asset Value (NAV). This represents the fundamental value of assets held by the fund or company.
What happened to the ETH ETF?
In fact, Kang’s argument is not without merit. As with ETFs, if demand does not come true in line with expectations, these vehicles may fall below the value of their ETH. They’ll be a compelling pitch, but it’s a disappointing adoption.
In a related previous post, Kang argued that many public ETH vehicles struggle to deliver returns comparable to simply retaining ETH. He also pointed out that they could be exposed to structural inefficiency and low liquidity, saying that the ETH ETF would not offer much “unless Ethereum develops a compelling pathway to improve its economy.”
Meanwhile, the broader markets may now value these treasury companies with a more significant view. As the ETH ETF is still limping in Kang’s view, the initial euphoria appears to be in the way of the market reality, with a disconnection manifesting and actual flows manifesting.
Counter Point: Recent Surge in ETF Inflow
That said, the final chapter of ETH ETF may not be written yet. After a period of poor performance, Ethereum ETF recently witnessed an increase in inflows at $281.3 million in the first week of June.
This indicates that institutional benefits may be strengthened. This is a development that can provide a more positive outlook for both the ETF and the ETH itself.
If Kang proves that it’s correct, 2026 could be the year when Ethereum-native investment products are still facing the biggest tests, not just from regulators, but also from the rarely tolerant market itself.
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