DAT Debate: SharpLink’s ETH Dump and $45B Treasury Loss
Digital asset treasuries (DATs) are under renewed scrutiny after the MSCI threatened to exclude them from its equity indexes amid a broader market sell-off. SharpLink, a prominent ETH-focused treasury, offloaded $33.5 million in Ethereum in November, triggering criticism that DATs represent "VC scams with overhangs." Haseeb Qureshi of Dragonfly Capital refuted the notion that DATs drive net selling pressure, noting only a handful have sold assets and arguing they may resume buying once market NAVs rebound. Meanwhile, crypto treasuries have shed over $45 billion in value, dropping from $140 billion to $97 billion in Q4. An MSCI review by mid-January could determine whether digital asset treasuries face further exclusion risks.
Bearish
The news highlights significant sell-off activity and a $45 billion decline in digital asset treasuries, amplified by SharpLink’s ETH dump and MSCI exclusion risk. Such red flags historically weigh on trader sentiment and liquidity, prompting cautious positions and lower price support. Like past index-related sell-offs, uncertainty around inclusion criteria can exacerbate downward pressure in both short-term trading and longer-term fund allocations.