What are the risks of relying on crypto ETFs for treasury management?
Relying on crypto ETFs for treasury management can have considerable risks for startups. One primary concern is regulatory uncertainty. The classification of crypto assets isn’t static. Regulations can change, impacting compliance and operational flexibility. For example, the SEC’s shifting stance on cryptocurrencies being commodities or securities could present compliance headaches for startups lacking the resources to navigate these complexities.
Another major risk is market volatility. The crypto market is notoriously volatile, and this swings the value of ETFs dramatically. Startups, particularly those with slim financial cushions, might find it hard to cope with such violent price movements. If their treasury is heavily…
