Crypto Treasury Firms Face 2026 Shakeout as ETFs, Falling Prices and Yield Needs Bite
Digital asset treasuries (DATs) expanded rapidly through 2025 but now face a wave of pressure heading into 2026. Rising numbers of corporate crypto holders (Bitcoin holders roughly doubled to 130+ in 2025), falling token prices and crowded valuations have cut assets under management and stressed liquidity. Executives and analysts — including Altan Tutar (MoreMarkets), Ryan Chow (Solv Protocol) and Vincent Chok (First Digital) — warn that treasuries that merely accumulate crypto or remain overexposed to volatile altcoins are vulnerable to forced, distressed selling in a downturn.
Competition from regulated, low-cost spot Bitcoin ETFs in the U.S. has intensified investor outflows from bespoke DAT products and challenged traditional fee models. Analysts say passive accumulation is no longer sufficient; surviving treasuries must pursue active, risk-adjusted strategies: generate yield via staking, DeFi and lending, implement dynamic rebalancing and capital-efficient financing, maintain operational liquidity to meet redemptions, and adopt stronger governance, TradFi-grade reporting and on-chain accounting. Institutional DeFi gateways and strategic specialisation (for example, stablecoin yield strategies or tokenised real-world assets) are cited as potential competitive advantages.
The consensus outlook is consolidation: lower-value custodians and altcoin-heavy treasuries are most at risk, while firms that professionalise operations, diversify yield sources, improve transparency and integrate with traditional finance standards have the best chance to endure. For traders, this means potential selling pressure on altcoins held by DATs and a structural flow toward regulated Bitcoin products; markets may see episodic liquidity stress when weaker treasuries meet redemptions, while professionalised treasuries could stabilise supply through active risk management.
Bearish
The news points to increased selling pressure and structural outflows away from bespoke DAT holdings toward regulated, liquid Bitcoin products. Short-term: weaker, altcoin-heavy treasuries facing redemptions are likely to liquidate positions, causing downward price pressure on altcoins and adding supply to Bitcoin markets when treasuries sell BTC to meet liquidity needs. ETF competition reduces demand for high-fee treasury products and may compress premiums, pressuring BTC-related spreads. Long-term: consolidation will remove some sellers as weaker firms exit, and surviving DATs that adopt yield and risk management could stabilise supply. Overall, the immediate price impact is negative — especially for altcoins and smaller-cap tokens held by treasuries — while Bitcoin faces mixed pressure from potential treasury sells offset by ETF inflows and broader institutional adoption.