The cryptocurrency market is currently seeing signs of an altcoin season, but a notable distinction is being made by analysts: this season appears to be exclusive to coins that have been incorporated into major corporations’ asset reserves. Bloomberg analyst James Seyffart shared these insights during his recent interview with Milk Road.
Seyffart pointed out that firms engaging in digital asset treasury investments (DATCO) are experiencing significant profits, even though the performance of individual altcoins remains comparatively lackluster against past market cycles. “I think the altseason has begun. […] In a sense, these DATCO are in full swing,” he emphasized, indicating optimism about the ongoing trends.
One of the critical factors contributing to this altcoin season is the awaited approval of various cryptocurrency exchange-traded funds (ETFs) in the United States. A range of assets—including Dogecoin, Chainlink, Stellar, Bitcoin Cash, Avalanche, Litecoin, Shiba Inu, Polkadot, Solana, and Hedera—are currently pending SEC approval for inclusion in these ETFs. Despite this positive potential, Seyffart tempered expectations regarding the level of demand for altcoin ETFs in comparison to those focused on Bitcoin. “Will there be the same interest as in the launch of bitcoin funds? Absolutely not,” he stated.
He elaborated that a diversified basket of products encompassing multiple cryptocurrencies is likely to attract more institutional investment than ETFs dedicated to individual cryptocurrencies. Seyffart noted that investment advisors typically favor diversification over the concentration of assets.
Moreover, he raised questions about the traditional dynamics of altseasons, suggesting that the market may have undergone a structural shift influenced by institutional activities. This change could reshape the patterns of cryptocurrency growth moving forward. In a related commentary from earlier in August, analysts from Bitfinex expressed that a genuine altcoin season may not materialize until new cryptocurrency ETFs gain approval.
As the market evolves and institutional players become increasingly influential, the conditions for altcoins could see a transformation that diverges from previous patterns, signaling a new era in the cryptocurrency landscape.
