Corporate Ether Holders Face Yield Pressure: Liquid Staking Strategy Emerges as ETF Differentiator

Crypto treasury companies holding ethereum need to get creative—or risk becoming commoditized by institutional ETF products.

That's the core message from Kean Gilbert, head of institutional relations at Lido Finance, who argues that eth treasury firms must adopt liquid staking and active yield strategies to stay competitive against the growing slate of staked ethereum ETFs now available to mainstream investors. Speaking at ETHCC 2026, Gilbert laid out the challenge plainly: passive staking returns alone won't cut it anymore.

The ETF Competitive Squeeze

The institutional ethereum landscape has shifted dramatically. US-listed staked eth products now include REX-Osprey's ETH + Staking ETF (launched September 2025), Grayscale's Ethereum Staking ETF and Mini variant, and BlackRock's iShares Staked Ethereum Trust ETF (introduced March 12). These products deliver straightforward staking exposure without operational complexity.

The yield numbers are competitive. Grayscale's staking product showed 2.26% net rewards as of April 6, while native eth staking was yielding approximately 2.72% annually according to Staking Rewards data. For treasury companies to justify their existence to shareholders, they need to beat these benchmarks—or offer something structurally different.

Active Deployment as Differentiator

Jimmy Xue, co-founder and COO of quantitative yield platform Axis, makes a crucial distinction: treasury companies shouldn't compete directly on headline yield against passive ETFs. Instead, they should leverage what makes them different—active management.

"A staked ETH ETF is a passive vehicle," Xue told Cointelegraph. "A DAT trading at a meaningful mNAV premium is promising something a passive ETF structurally cannot deliver, which is active, dynamic deployment of spot inventory across opportunities as they arise."

The mNAV premium investors pay reflects confidence in management's ability to deploy treasury assets strategically. Basis trading emerges as a major yield source for these companies—a sophisticated strategy beyond basic staking that eth treasury managers can exploit.

Real-World Adoption Patterns

Public filings reveal the strategy is already gaining traction. Sharplink Gaming, the second-largest corporate ethereum holder, generated 14,516 ETH (roughly $30.8 million) in staking rewards through March. Notably, 33% came from liquid staking protocols while 66% came from native staking—demonstrating a deliberate portfolio approach.

However, sharplink reported a $734 million net loss for 2025, highlighting how even sophisticated treasury management faces headwinds during crypto market downturns.

BTCS Inc., ranked among the top 10 ethereum treasury companies, has also adopted liquid staking tactics. Out of its 29,122 total eth holdings, the company liquid staked 4,160 ETH ($8.8 million) through Rocket Pool nodes per July 2025 SEC filings. This hybrid approach—combining native and liquid staking—appears to be emerging as best practice.

The data shows treasury companies are exploring strategies like posting eth as collateral and borrowing against it to generate layered returns. This active portfolio approach creates the justification for these vehicles to exist alongside passive ETF alternatives.