The sustainability of corporate crypto treasuries hinges on effective governance and discipline, states HashKey Capital CEO Deng Chao.
In a Cointelegraph interview, Chao suggested that digital asset treasuries (DATs) can be viable over the long term, but “with a crucial caveat.” Those that lack proper risk frameworks, have poor diversification, or treat digital assets as mere speculative investments are likely to fail during volatile periods.
“Resilience stems from discipline,” he commented. “Digital assets aren’t inherently unsustainable; their management is what makes the difference.”
This statement follows the recent launch of HashKey’s $500 million DAT fund in Hong Kong. The fund focuses on corporate treasuries utilizing Bitcoin and Ethereum, actively allocating capital in onchain infrastructure, custody, and ecosystem services.
Designed for institutions and corporations that wish to operationalize digital assets, it aims to promote not just holding them but also exploiting the growth of the underlying infrastructure, he explained.
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DATs vs. ETFs: distinct tools, differing purposes
Chao differentiated between DATs and ETFs, noting, “we don’t see them as competitors but rather as complementary options.” ETFs provide straightforward exposure to mainstream investors, whereas DATs are tailored for treasuries looking to incorporate crypto into their long-term strategies.
According to SoSoValue data, spot Bitcoin ETFs collectively manage $152.31 billion in assets, equating to 6.63% of Bitcoin’s total market cap. In contrast, public firms hold 1,111,225 Bitcoin (BTC) on their balance sheets, valued at $128 billion, as per BitcoinTreasuries.NET.
Chao noted that many corporate treasuries have suffered from stringent fund structures or extreme volatility. HashKey’s DAT offering allows for regular subscriptions and redemptions and includes both BTC and ETH to mitigate concentration risks.
“Treasuries venturing into crypto have consistently battled two major challenges: liquidity and operations,” Chao stated. “Our DAT fund was designed to address these issues.”
HashKey intends to allocate capital across the Bitcoin and Ethereum (ETH) ecosystems, which Chao referred to as the pillars of liquidity and innovation in the current crypto landscape. Key sectors include custody, payment systems, staking services, and regulated stablecoin infrastructure.
The fund has a global focus. While it began in Hong Kong, Chao confirmed that HashKey also aims to target the US, Japan, Korea, Southeast Asia, and the UK, emphasizing that “the fund’s investment thesis has been global from the start.”
Related: Institutional demand rises with new crypto treasuries and SEC reforms: Finance Redefined
Misperceptions hinder growth, asserts Chao
Chao also highlighted skepticism from traditional finance, with many institutional players still perceiving crypto as speculative, insecure, or incompatible with standard accounting practices. “These misapprehensions aren’t merely knowledge gaps; they act as barriers to wider institutional acceptance,” he mentioned.
Looking forward, Chao expressed a strong belief in the potential for real-world asset (RWA) tokenization, institutional OTC markets, and infrastructure for onchain financial products.
“Tokenized products broaden the investment landscape,” he remarked. “OTC markets facilitate capital flow at scale… This convergence indicates a transition from fragmented crypto activities to a fully integrated digital finance ecosystem.”
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