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Feb 09
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$2.655
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AVOID
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Matthew Sigel
Head of Digital Asset Research at VanEck
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Sigel says VanEck is "very underweight" DATs. He describes them as "hedge funds in a box" that add leverage to already volatile assets. He notes that institutions are "scared by that." The market pays a low PE multiple for hedge funds. DATs are trying to sell yield via leverage, but the volatility risk outweighs the return for institutional mandates. As ETFs (spot products) become available, the inferior structure of DATs (high fees, leverage risk, discount to NAV) renders them obsolete. AVOID (or SHORT if pair-trading against Spot ETFs). A short-term crypto bull run could temporarily spike high-beta/levered assets like DATs before they structurally fail. |
The Block
VanEck's AVAX thesis: product-market fit, eco...
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