Treasury companies have addressed Ethereum’s narrative problem by framing Ether in a way digestible for traditional investors, according to Matt Hougan, chief investment officer at Bitwise. He stated that Ethereum has struggled to present income-generating characteristics desirable for legacy financial institutions until Ether was incorporated into an 'equity-wrapper.' This change allows traditional investors to recognize its value through corporate earnings generated from staking. Hougan noted that ETH's valuation challenge has left Wall Street perplexed over its value proposition, considering factors like its store of value status, the burn mechanism, and staking yield. He emphasized that, although there are inherent risks associated with holding ETH—like the volatility of crypto markets and currency basis risk—corporate treasuries seem well-positioned to mitigate these concerns with diversified and spaced-out maturity structures. Hougan underscored the importance of long-term investment horizons to ride through crypto’s short-term volatility and reassured that any potential downturns would unfold gradually rather than resulting in catastrophic liquidations.

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