Markets are always searching for the next significant trade. In 2026, I foresee the trade being a new twist on traditional basis trades, where investors go long Digital Asset Treasury companies (DATs) and short futures. While advanced market participants have seen positive returns with the long ETF, short futures strategy for Bitcoin and Ether, this new variation will include DATs and encompass a wide range of crypto projects commonly referred to as “alts.”
Digital Asset Treasuries (DATs) had a breakout year in 2025. Usually public companies, DATs issue and sell public shares, using the proceeds to acquire a dedicated crypto asset. This strategy aims to increase their crypto tokens per share. For the average investor, DATs can be traded, custodied, and hedged like any other stock, removing operational complexity or regulatory uncertainty for traditional investors hesitating to manage native crypto assets. Consequently, DATs are emerging as a bridge between crypto markets and traditional finance.
The strength of DATs lies in their flexibility. These companies can implement various treasury and yield strategies to enhance their multiple to net asset value, or “mNAV.” By maximizing token ownership on a per-share basis, DATs aim to outperform their underlying tokens. A notable example is Michael Saylor’s strategy, which saw his stock price surge 22x since it started accumulating Bitcoin in 2023 through September 2025, while the digital asset appreciated nearly 10x during the same time frame.
However, volatility can move in both directions. Recent market fluctuations have led some DATs to retrench, causing mNAVs to decline. Despite the operational ease and regulatory clarity offered by their structure, many DATs remain inaccessible to numerous investors due to their volatility. Hedging options have been limited by restrictions on Commodity Futures Trading Commission (CFTC) regulated futures for most tokens.
The Missing Link: CFTC-Regulated Futures
In traditional markets, futures are contracts enabling investors to lock in the future price of an asset. For centuries, futures have been instrumental in risk management, allowing institutions to hedge exposure, speculate on price movements, and scale effectively. However, in crypto, regulated futures are available only for a limited number of tokens, like Bitcoin and Ether.
The lack of comprehensive crypto futures is largely attributed to former SEC Chairman Gary Gensler, who claimed that most crypto assets were securities. Futures are derivatives on commodities, which would have placed them outside of his authority. As a result, Gensler hindered their introduction, depriving investors of essential risk management tools.
The landscape has shifted. Under President Donald Trump’s administration, there has been a concerted effort to position the U.S. as the “crypto capital of the planet.” New SEC Chairman Paul Atkins has publicly stated that “most crypto tokens are not securities.”
With this regulatory barrier lifted, futures are now receiving increased attention. These futures serve not just as standalone products but as a gateway to broader market access. Recently, the SEC clarified that tokens with six months of futures trading can be more easily listed as ETFs, facilitating institutional capital and mainstream adoption. As crypto futures gain liquidity, the long DAT, short futures strategy becomes feasible.
The DAT Basis Trade
A basis trade occurs when an investor buys an asset in the spot market and simultaneously sells a futures contract on the same asset, aiming to profit from the price difference — or “basis” — between them. “Contango” refers to situations where future prices exceed spot prices; under such conditions, basis trade strategies are often profitable.
DATs hold, stake, and even restake digital assets, generating real on-chain yield. By purchasing their stock, investors gain exposure to the cryptocurrency and its yield. By shorting the corresponding futures of the DATs’ crypto holdings, investors hedge against price fluctuations. The remaining profit comes from the difference between the future price of the token and the spot holdings of the DAT. When a DAT trades below its net asset value or the future price of the token (or “total return” token, which includes staking yield) is higher than the DATs’ spot holdings, investors can achieve a steady, relatively market-neutral return. Although it’s challenging to estimate the basis size, for alts, disparities may be more pronounced than other assets, providing higher yields to investors.
The potential rewards are significant. When mNAVs are rising and futures are in contango, the DAT basis trade may yield compelling returns. However, like all strategies, it carries risks and potential downsides. A primary concern is a drop in mNAV, where losses on the stock leg may not be fully mitigated by the futures hedge. Additionally, DATs trading at a discount to NAV may become attractive takeover targets. While this could restore losses by recovering mNAV, acquirers might shift to other asset classes, necessitating an unwinding of the trade.
For those wary of these risks, ETFs—designed to maintain steady mNAVs at par—may be more appealing than DATs for executing a regulated basis trade. However, comprehensive alt ETFs and futures in the underlying asset are just starting to emerge. Thus, the bridge provided by DATs plays a crucial role in familiarizing traditional investors with the possibilities as crypto investing becomes more mainstream.
As regulated futures expand across alts, the long DAT, short futures trade could offer Wall Street an ideal means to capture crypto yield without directly handling wallets or enduring the extreme volatility associated with crypto as an asset class. In 2026, I predict this will be the trade of the year.
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