ETH Treasury Firms Could Crash Like ETFs, Says Analyst

• Mechanism Capital’s Andrew Kang warns that ETH treasury strategy firms may underperform like ETH ETFs, which failed to meet high demand expectations
• He predicts many will trade at significant net asset value (NAV) discounts by 2026 due to low adoption
• Despite a recent $281 million ETF inflow, Kang believes most ETH investment products won’t perform

Andrew Kang, a leading cryptocurrency market analyst and partner at crypto investment platform Mechanism Capital, has warned that Ethereum Treasury Strategy firms may go the same way as the ETH exchange-traded funds (ETFs) – a wave of excitement followed by underwhelming success.

In a recent post on X, he likened the anticipated fate of ETH treasury companies to that of the much-hyped spot ETH ETFs, which received approval from US regulators last year. Despite initial market optimism, early ETF trading volumes have been modest at best, giving way to harsh market reality.

A Parallel to the Underwhelming Spot ETH ETF Launch

This has led many to reassess their expectations for institutional demand. As Kang wrote, “demand expectations [are] much higher than reality.” In other words, companies adopting an ET…

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