A Trend That Rose Quickly

Digital-asset treasuries, often called DATs, became one of the strongest narratives during the last market cycle. New companies, investment products and public vehicles built their pitch on holding large pools of crypto and offering investors indirect exposure. Many of these offerings were trading at steep premiums because market sentiment treated them almost like growth stocks rather than simple asset wrappers.

CoinShares now argues that the momentum behind those premiums has faded. Valuations are normalizing, and prices across the category once again sit close to the actual value of the assets held.

Premiums That Once Looked Untouchable

At the peak of the hype, several treasury-style products were priced far above their underlying portfolios. Trading desks and analysts described it as artificial demand created by scarcity, marketing push and a belief that these structures would eventually expand into larger financial enterprises.

Premiums eventually collapsed as more transparent vehicles entered the market and as spot exposure became easier to access. Investors no longer needed special structures when regulated alternatives existed.

Why CoinShares Believes the Bubble Has Deflated

According to the analysis, the cooling happened for three main reasons:

• Access to direct spot products has improved

• Retail investors are no longer chasing headline narratives

• Institutional capital prefers regulated, fee-efficient exposure

Once liquidity increased and regulatory clarity improved, the category no longer relied on speculative pricing.

What remains today, CoinShares notes, is a much more rational environment. DAT vehicles now trade near their actual net asset values, and flows are based on simple portfolio needs rather than hype.

What This Means for Investors

For holders, the shift brings a mix of relief and caution. Investors who entered at inflated valuations have likely faced a re-pricing that reflects reality. On the other hand, those considering new positions now operate in a healthier market with prices anchored much closer to fundamentals.

It also creates better conditions for institutional entry, since valuation distortions are smaller and liquidity spreads have narrowed.

A Space That Still Has a Place

CoinShares is not declaring the category irrelevant. Instead, it argues that DAT vehicles now sit in a more logical position:

• A treasury model still makes sense for certain strategies

• Listed asset-holding structures remain useful for regulated markets

• Corporate-style treasury models could return when cycles shift again

The difference is that investors are more aware of what they are actually buying. A DAT structure is no longer viewed as a guaranteed high-growth investment, but as a transparent exposure wrapper.

The Road Ahead

As the next cycle unfolds, DAT companies will likely need deeper fundamentals rather than storytelling. Premium pricing is unlikely to return unless they provide real yield, strategic corporate expansion, or measurable cash-flow-driven activity.

For now, the bubble appears to have settled quietly, leaving behind a more mature market where value aligns closely with actual holdings.