ETF Store President: BTC & ETH Treasury Stocks Are “Crypto Derivatives” With Unique Risks

Key PointsNate Geraci, President of The ETF Store, says companies holding BTC & ETH should be treated as cryptocurrency derivatives.Warns of special risks tied to their valuations and market sensitivity.Surprised that the industry still debates this classification.According to TechFlow, Nate Geraci, president of The ETF Store, argued on Aug. 18 that publicly traded firms whose treasuries primarily hold Bitcoin (BTC) and Ethereum (ETH) should be regarded as crypto derivatives, not traditional equities.Geraci emphasized that these firms carry unique risk profiles, since their valuations are largely dependent on underlying crypto asset performance. He expressed surprise that the industry still debates this framing, stating that valuation models must explicitly incorporate their derivative-like characteristics.Investors should assess BTC/ETH treasury stocks as high-beta crypto proxies, with risks distinct from both traditional equities and direct crypto exposure.