Bloomberg Intelligence analyst James Seyffart expressed the opinion that the approval of altcoin-based exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) will not lead to a traditional altseason. He stated this during his participation in The Milk Road Show podcast.
This is reported by Finway
Why Altcoin ETFs Will Not Cause an Altseason
Seyffart noted that even if spot ETFs for digital assets such as DOGE, LINK, XLM, BCH, AVAX, LTC, SHIB, DOT, SOL, and HBAR are launched, a sharp market increase is not expected. According to him, these assets already meet SEC requirements, but demand for them remains insufficient for a significant market movement.
The podcast participants also discussed the potential approval of ETFs for ADA and XRP, which, in the expert’s opinion, may emerge within the next few months. Seyffart emphasized that the launch of Ethereum ETFs did not meet expectations due to a rushed start and the inability of brokers to fully assess the product.
“We were extremely ‘bearish’ on Ethereum ETFs. […] They came out too quickly. Brokers had no opportunity to evaluate them. And staking is still banned, seriously?”
Despite high interest in futures ETFs for Solana and XRP, the analyst is convinced that they will not reach the popularity level of spot Bitcoin ETFs.
Treasury Companies and Market Prospects
Seyffart specifically highlighted treasury companies (DAT) as the main beneficiaries of the current market demand. He believes that these structures are attracting the most interest from counterparties with available capital. According to him, DATs provide simple and convenient access to the market for TradFi players, although some of them may disappear from the market in the future.
The expert also emphasized that mixed ETFs based on a basket of crypto assets are likely to be more successful than those based on a single altcoin:
“What will really be successful, as I see it, are mixed exchange-traded funds based on a basket of crypto assets.”
Seyffart stressed that the modern cryptocurrency market is becoming increasingly institutionalized, and the main driver of growth is institutional capital directed towards Bitcoin and Ethereum. In his opinion, the approval of ETFs containing multiple assets with each holding up to 5% may significantly impact their value, but this will not mark the beginning of a classic altseason.
Overall, the analyst believes that single altcoin-based funds will struggle to replicate the success of Bitcoin or Ethereum ETFs. If we are to talk about an altseason, he stated that currently it is the “altseason of treasury companies (DAT).”