Bernstein: Ether Treasury Strategies Eye Yield, But Caution Is Warranted

Ether Treasuries Shift Focus From Reserves to Yield, Bernstein Says

A $1 billion ether treasury could generate up to $50 million in annual yield, according to a new report from Wall Street broker Bernstein.

Firms managing ether (ETH) treasuries are evolving their approach—no longer treating ETH solely as a reserve asset, but rather as a productive, yield-generating form of capital.

In recent months, companies like BitMine Immersion Technologies (BMNR) and SharpLink Gaming (SBET) have introduced ETH treasury strategies focused on generating passive income through staking. This approach leverages Ethereum’s proof-of-stake model to earn yield while also contributing to network security.

The report highlights a key distinction between ETH and bitcoin (BTC) treasury strategies. While bitcoin treasuries—such as that of MicroStrategy (MSTR)—prioritize liquidity and long-term holding, ether treasuries are actively embracing staking yields, which currently sit just under 3% but have historically ranged between 3% and 5%.

Bernstein estimates that a $1 billion ETH treasury could produce between $30 million and $50 million in annual staking rewards.

However, this income comes with added complexity. Unlike bitcoin’s simple custody model, Ethereum staking requires active capital deployment and rigorous risk management. Liquidity is also more limited: unstaking ETH can take several days, potentially exposing treasuries to volatility during that window.

More sophisticated yield-enhancing strategies—such as re-staking and decentralized finance (DeFi) yield farming—introduce additional layers of risk, particularly around smart contracts and protocol security. As a result, treasury managers must strike a careful balance between yield generation and institutional-grade safeguards.

Despite these challenges, Bernstein remains optimistic. The report notes that nearly 30% of ETH supply is currently staked, with another 10% locked in DeFi protocols. Combined with increasing inflows into ether ETFs, these factors indicate a robust structural demand for the asset.

Supply growth, meanwhile, remains constrained, supporting a bullish outlook. Bernstein concludes that with disciplined liquidity and risk controls, ether is well-positioned to underpin large-scale treasury operations.