Ether Treasuries Target Yield, but Risk Looms, Says Wall Street Broker Bernstein
In recent months, several companies have unveiled ether treasury strategies that generate passive yield through ETH staking. These include BitMine Immersion Technologies (BMNR) and SharpLink Gaming (SBET).
According to a report from Wall Street broker Bernstein published on Monday, these companies are structuring treasuries around the second-largest cryptocurrency, staking assets to earn operating income while supporting the network's financial base.
While bitcoin (BTC) treasuries like Strategy's (MSTR) favor liquidity and passive holding, ether treasuries are leaning into staking yields, currently just under 3%, though historically ranging between 3%–5%, the report noted.
A $1 billion ether treasury could generate $30million–$50 million in annual yield, Bernstein estimates.
But with that income comes complexity. Ethereum's staking model offers yield to holders rather than miners, requiring active capital deployment and more intensive risk oversight.
Unlike Strategy's highly liquid bitcoin reserves, ether staking introduces liquidity constraints. Unstaking can take days, creating potential mismatches in times of volatility.
More advanced strategies, such as re-staking or decentralized finance-based (DeFi) yield farming, amplify smart contract and security risks, the report said. Treasury managers will need to balance yield optimization with institutional-grade custody and risk infrastructure.
Still, Bernstein expects leading ether treasuries to manage these trade-offs effectively.
With nearly 30% of ether supply staked and another 10% locked in DeFi, combined with ongoing ETF inflows, the report suggests strong structural demand for ETH in the near-to-medium term.
Supply, meanwhile, remains relatively flat. The analysts remain bullish on ether and its ability to support treasury-scale capital strategies, as long as liquidity and risk are handled with discipline.Sign in to access your portfolio
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