Bernstein Flags Risk in Yield-Driven Ether Treasury Allocations

Bernstein: Ether Treasuries Transitioning From Passive Holdings to Yield-Driven Capital

Ether (ETH) is increasingly being utilized not just as a balance sheet reserve, but as an active yield-generating asset, according to a new report by Wall Street brokerage Bernstein.

Several companies—including BitMine Immersion Technologies (BMNR) and SharpLink Gaming (SBET)—are now structuring corporate treasuries around ETH and employing staking strategies to generate passive income. Through Ethereum’s proof-of-stake mechanism, these firms are able to earn returns while contributing to the security and operation of the network.

Bernstein estimates that a $1 billion ETH treasury could generate between $30 million and $50 million annually in staking yield. Current yields are just under 3%, but have historically fluctuated between 3% and 5%.

This approach diverges sharply from bitcoin-focused treasuries, such as MicroStrategy’s (MSTR), which emphasize liquidity and long-term holding. In contrast, ether treasuries are embracing yield opportunities—though with added complexity and reduced liquidity.

Ethereum staking introduces operational considerations not present with bitcoin. Unstaking ETH can take several days, potentially exposing treasuries to price swings during that period. Moreover, more advanced strategies—such as re-staking and decentralized finance (DeFi) yield farming—offer enhanced returns but come with increased smart contract and custodial risk.

The report notes that managing these risks requires robust infrastructure and institutional-grade safeguards, particularly as capital strategies become more sophisticated.

Nonetheless, Bernstein remains constructive on ether’s long-term role in treasury management. Nearly 30% of ETH’s total supply is currently staked, and another 10% is committed to DeFi protocols. With the added momentum from ETH exchange-traded fund (ETF) inflows, demand for the asset continues to strengthen.

Meanwhile, ETH’s supply dynamics remain stable, reinforcing the potential for yield-centric treasury models. Bernstein concludes that, with disciplined execution, ether can effectively serve as a productive asset within institutional portfolios.