Altcoin ETFs Fuel New Alt Season as Treasury Firms Boost Crypto Growth

Bloomberg Analyst James Seyffart Says Altcoin ETFs Lead Alt Season

Bloomberg ETF analyst James Seyffart says the crypto market is already in an “alt season.” 

Unlike previous cycles driven by sudden token price rallies, this one is led by digital asset treasury companies (DATCOs) that are stacking their balance sheets with altcoins. 

Source: X 

Seyffart explains that upcoming Exchane Traded Funds approvals may not repeat Bitcoin’s earlier institutional growth.  

Whereas, basket altcoin etfs that include multiple cryptocurrencies are expected to attract more capital than single digital asset ETFs.

Current Market Trends Confirm Growth

According to the latest Altcoin Season Index from CoinMarketCap, 

Source: CoinMarketCap

• The index currently stands at 50/100, indicating that the market is balanced but leaning toward altcoin dominance. 

• Last week, the index was 57, and last month it was 42. 

• Yearly highs for the altcoin season reached 87, while Bitcoin season dropped as low as 12. 

This data shows that altcoins are steadily gaining attention, supported by institutional capital rather than just retail hype.

DATCOs and Institutional Influence

DATCOs now manage over $100 billion in assets, giving them the power to drive market trends. 

Their buying behavior is more strategic than retail-driven pumps. This led to sustained liquidity and sector-wide growth. 

Analysts note that basket crypto investment funds, which includes multiple assets, are particularly more appealing because they offer diversification and reduce risk. 

This makes them appealing to both institutional investors and cautious retail participants.

Previous Approval Updates and Regulatory Moves

The Bitwise ETF gained quick approval from the SEC but was halted temporarily under Rule 431(e).

It tracks the Bitwise 10 Crypto Index, comprising Bitcoin (78.72%), Ethereum (11.10%), XRP (4.97%), Solana, Cardano, and Avalanche.

The halt indicates the regulators are scrutinizing the filings cautiously before letting them trade to protect investors as the market expands.

Truth Social Crypto ETF Aims for Blue-Chip Tokens

Another crypto product in the process is the Truth Social Crypto ETF. Submitted by Yolkville America Digital, it is set to hold Bitcoin (70%), Ethereum (15%), Solana (8%), XRP (2%), and Cronos (5%).

This product provides a vehicle for investors to gain exposure to top cryptocurrencies without directly owning them.

The addition of SOL, XRP, and CRO differentiates it from other funds and will create a lot of interest if approved.

Altcoin ETFs and Mainstream Adoption

The increase of altcoin ETFs indicates that cryptocurrencies are coming closer to mainstream finance.

ETFs simplify getting exposure to several coins simultaneously, lowering risk and regulatory issues.

As Bitcoin and Ethereum have already secured U.S. ETF approvals, including altcoins such as SOL, XRP, and CRO could push mainstream crypto adoption.

Looking Ahead

The combination of ETF approvals, DATCO purchasing power, and rising interest in the market suggests that this alt season may be longer and steadier than the previous ones. 

Altcoin ETFs will likely become a central investment channel, offering diversification as well as access to the expanding digital asset universe.