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Bitcoin News Update: Hong Kong Cautions That DAT Premiums May Disappear Suddenly, Triggering a Wave of Selling

Bitcoin News Update: Hong Kong Cautions That DAT Premiums May Disappear Suddenly, Triggering a Wave of Selling

Bitget-RWA2025/10/31 04:38
By:Bitget-RWA

- DAT strategy stocks like MSTR and meme DATs face sharp sell-offs, with MSTR down 53% and major meme DATs losing over 80% as investor confidence wanes. - Hong Kong regulators warn DAT premiums (e.g., mNAV ratios) could vanish rapidly under stricter oversight, citing MSTR's 3.6% YTD share decline despite Bitcoin gains. - U.S. crypto ETFs lost $552M in two days (Oct 29-30), with Fidelity's FBTC leading outflows, as Fed Chair Powell hinted 2025 rate cuts may end, deepening market uncertainty. - Bitcoin and E

The downturn in data-trust (DAT)

shares has drawn increased attention from both investors and authorities, as Marathon Digital Holdings (MSTR) has plunged 53% from its peak and leading meme DATs have dropped by more than 80%. This wave of selling highlights mounting doubts about the durability of the premiums built into these products, especially as regulatory oversight intensifies and market conditions evolve.

Hong Kong’s financial regulator has become a prominent voice of caution, warning that the “substantial premium” seen in DATs—commonly calculated as the ratio between a firm’s market cap and the value of its assets (mNAV)—could disappear swiftly if stricter regulations are enforced. Wong Tin-yau, a senior regulator, noted that DATs often trade at a premium over their net asset value but warned this advantage could be wiped out “in a single day” once new rules take effect, according to a

. This skepticism is reinforced by real-life cases such as , whose mNAV has declined even as Bitcoin’s price has risen. As of October 30, MSTR’s stock had dropped 3.6% since the start of the year, highlighting the gap between asset values and share performance.

Bitcoin News Update: Hong Kong Cautions That DAT Premiums May Disappear Suddenly, Triggering a Wave of Selling image 0

At the same time, increased volatility in the broader market has triggered significant withdrawals from crypto-focused investment products. On October 29 alone, U.S.

ETFs experienced net outflows totaling $470.71 million, while ETFs saw $81.44 million withdrawn, according to . This selloff occurred as Federal Reserve Chair Jerome Powell suggested that the recent 25-basis-point rate reduction could be the last for 2025, fueling uncertainty about future interest rate moves. Fidelity’s Bitcoin ETF (FBTC) led the outflows with $164.36 million, followed by the Ark & 21Shares partnership product, which lost $143.80 million. Ethereum ETFs faced similar challenges, with Fidelity’s FETH product seeing $69.49 million in outflows. Bitcoin’s price fell 3.71% to $108,325.44, while Ethereum declined 2.68% to $3,904.19.

The drop in DATs and ETFs highlights a wider shift toward investor caution. Warnings from Hong Kong regulators and the Federal Reserve’s unclear policy stance have combined to undermine faith in strategies dependent on asset premiums. The takeaway for investors is evident: the high-risk, high-return approach of DATs may be unsustainable in an environment of tighter regulation and uncertain economic conditions.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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