Ethereum Treasuries do not suffer from the handicap that ETH ETFs do. This handicap on ETFs restricts them from staking, which allows ETH holders to earn additional revenue. Since most treasuries do not have any such clause or regulation, they can stake and earn more than Ethereum ETFs.
In this article, we will dive deeper into why Ethereum Treasuries have a much higher chance of survival. We will also examine whether ETFs will ever be able to catch up with Treasuries.
Why are Companies Eager to Create Bitcoin and Ethereum Treasuries?
Why did Ethereum ETFs Fail?
Ethereum ETFs failed to register much traction even a year after their launch. They performed meagrely despite their Bitcoin counterparts achieving immense success.
A huge role in the failure of Ethereum ETFs was played by the US SEC during the Biden administration, when ETFs were denied the ability to stake ETH for additional gains.
Ethereum holders have a much wider scope for increasing their returns than Bitcoin investors. This is because they can leverage Ethereum’s DeFi capabilities to stake, lend, yield farm, liquid re-stake, and many other things.
Since Ethereum ETFs were denied the ability to stake, they could only benefit from capital appreciation. On the other hand, a person who owns Ethereum directly (spot holding) can easily stake ETH and earn rewards from both staking and price appreciation.
As a result, investors have seldom preferred Ethereum ETFs, instead opting to invest directly in ETH.
Why Treasuries Have a Better Shot at Success?
Treasuries do not have any restrictions on staking. They can reap the benefits of staking, re-staking, yield farming, lending, and collateralized borrowing, providing them with a wide range of methods to increase their yield.
Furthermore, Treasuries can also participate as validators due to their substantial holding sizes, enabling them to influence future developments in Ethereum.
As a result, several companies began establishing multi-million-dollar treasuries. Here is a comprehensive list of all major Ethereum Treasuries.
You can easily compare this list with that of Ethereum ETFs and see the sheer difference between them.
Will ETFs Ever Catch Up With Treasuries?
The only thing that stops investors from buying Ethereum ETFs is their inability to stake, which reduces the yield on any investment. These treasuries require staking permission to match or surpass the returns of direct holdings and Treasuries.
In October 2025, Grayscale managed to secure staking permission for its mini and full-fledged Ethereum ETFs, making it the first US-based Ethereum ETF to do so.
However, Grayscale remains an ETF that charges high fees, reducing the positive effects of staking.
As more ETFs get staking permission, the crypto markets could see a rivalry between spot ETF investors and Treasury share buyers.
