The DAT company is facing an investigation, and the approval of the crypto ETF may sound the "death knell" for Strategy and other crypto assets treasury companies?

Founders Fund president and ETF expert Nate Geraci has made a startling prediction that the newly approved universal listing standards for crypto ETFs by the SEC could be the "death knell" for digital asset treasury companies like Strategy (MSTR), Metaplanet (MTPLE), and Bitmine (BMNR). He pointed out that DATs have previously benefited mostly from regulatory arbitrage, but as the era of ETFs arrives, this advantage is fading. Meanwhile, a recent report from The Wall Street Journal confirms that U.S. regulators are reviewing unusual trading activities of these crypto treasury companies, especially the trading patterns before and after their announcements of cryptocurrency purchases, which could trigger a deep investigation related to insider trading.

Regulatory Authorities Review Abnormal Transactions: Insider Trading Investigation Risks Increase

The stock price of DATs company has recently seen a parabolic rise, but this frenzy of trading activity has drawn the keen attention of U.S. regulators.

· WSJ Report: The Wall Street Journal reports that the SEC and FINRA are examining unusual trading activities of companies that have made cryptocurrencies (such as BTC, ETH, SOL, etc.) a core part of their business strategy, particularly the trading patterns before and after announcements of their digital asset purchases.

· Insider trading risk: Lawyers familiar with the matter indicate that such letters issued by FINRA often lead to deeper insider trading-related investigations. Former SEC enforcement attorney David Chase stated, "When these letters are sent out, the market really heats up. This is usually the first step in an investigation."

The "End" Theory of ETF Experts: The Disappearance of Regulatory Arbitrage Advantages

ETF expert Nate Geraci believes that the SEC's introduction of new universal listing standards for crypto ETFs will fundamentally disrupt the market logic of DATs companies.

· The end of regulatory arbitrage: Geraci argues that DATs companies previously mainly benefited from regulatory arbitrage, as investors gained exposure to crypto assets like Bitcoin or Ethereum by purchasing DATs stocks (such as MSTR), since there were no spot ETFs at that time.

· "Game Over": He added that if the staking function is approved for inclusion in the ETF, it will further weaken the relevance of DATs, which he referred to as "pretty much game over." Just yesterday, the first Ethereum staking ETF in the U.S. went live.

· Investment Advice: Geraci advises investors to stick to investing in spot Crypto Assets ETFs or directly holding the underlying digital assets themselves, rather than trading stocks of companies like Strategy (MSTR), BitMine (BMNR), Metaplanet (MTPLF), etc.

Counterargument: DATs Still Have DeFi Potential

Not all market experts agree with Geraci's "finality" theory. Bloomberg ETF analyst James Seyffart has offered a rebuttal to this.

· History proves: Seyffart pointed out that the spot ETF "did not kill" MicroStrategy (MSTR), indicating that MSTR is still able to survive and thrive.

· Differentiated Advantage: He emphasized that ETFs cannot deploy capital within decentralized finance (DeFi) ecosystems such as Ethereum (ETH) or Solana (SOL) to generate yields. This means that DATs companies can theoretically still obtain differentiated yields that ETFs cannot provide by participating in DeFi.

· Long-term concern: Nevertheless, Seyffart also acknowledges that many existing products in the market may not survive in the long term.

Conclusion

Nate Geraci's bold predictions, along with U.S. regulators' scrutiny of unusual trading, have issued a dual warning to digital asset treasury companies like MicroStrategy. As the popularity of spot encryption ETFs and the establishment of universal listing standards grow, the regulatory arbitrage space these companies rely on is being rapidly compressed. While analysts like James Seyffart believe that DATs can remain competitive by deploying DeFi yield strategies, the lack of this core narrative of regulatory arbitrage, combined with the potential risks of insider trading investigations, will undoubtedly place significant long-term selling pressure on these companies' stocks. Investors and the market should closely monitor the progress of SEC and FINRA investigations, as well as the actual capital substitution effects of the ETF market on these treasury stocks.

Disclaimer: This article is for news information only and does not constitute any investment advice. The crypto market is highly volatile, and investors should make decisions with caution.