Bloomberg Exchange-Traded Fund (ETF) analyst James Seyffart shared his perspective on the long-awaited altcoin season and how it may differ from previous cycles following the boom of Digital Asset Treasuries and institutional adoption.<\/p>\n
In a recent interview with Jay Hamilton from Milk Road, James Seyffart, senior analyst and ETF expert at Bloomberg, reaffirmed<\/a> his stance that the four-year cycle theory has \u201clost a lot of value,\u201d at least for this cycle.<\/p>\n \u201cI\u2019m one of those people not necessarily saying this time is different, but I don\u2019t think we\u2019re going to, you know, peak in later this year and then drop 80%. I just don\u2019t think that\u2019s going to happen anymore,\u201d he stated.<\/p>\n The analyst previously explained that with institutional adoption and treasury companies, the cycle\u2019s amplitude will reduce significantly, adding that this theory has gotten \u201cmuted\u201d and \u201cIt won\u2019t be as strict as on the money, where everything collapses in November or December.\u201d<\/p>\n During the Thursday interview, he affirmed that, unlike the previous cycle, the market appears to be experiencing what could be considered a \u201ccorporate\u201d altcoin season, driven<\/a> by institutional adoption, Digital Asset Treasury Companies (DATCOs), and Initial Public Offerings (IPOs).<\/p>\n Seyffart considers that DATCOs are \u201ctaking a lot of steam\u201d from any potential traditional altcoin season, as \u201cthey\u2019ve been on absolute fire.\u201d Based on this, he suggested that in the short term, the highly anticipated altcoin season is occurring on public markets through institutions:<\/p>\n The thing is, I just think right now this market is becoming a little more institutionalized (\u2026). I just don\u2019t think altcoins are going to run in the same way it has in years past. Largely because the money that\u2019s mostly driving the performance of things like Bitcoin and ETH right now is institutional money.<\/p>\n The ETF expert asserted that neither institutional money nor the long-awaited approval of multiple altcoin-based ETFs will fuel a rally like the BTC or ETH-based products had at launch, despite the evident interest in the investment products.<\/p>\n \u201cAnyone who thinks like, \u2018oh, Bitcoin ETFs took in 40 billion, (\u2026) XRP ETF is going to take in the same amount\u2019 or whatever. That\u2019s just not how this is going to work. These are longer tail assets,\u201d he added.<\/p>\n Recently, Canary Capital CEO Steve McClurg claimed<\/a> that the XRP spot ETFs could hit $5 billion worth of inflows in their first month. He pointed out that after BTC, XRP is the most recognized token among Wall Street investors, which could drive significant adoption from the start and even outperform Ethereum ETFs.<\/p>\nAltcoin ETFs Demand Won\u2019t Match BTC, ETH<\/h2>\n