Altcoin ETFs Unlikely to Ignite Alt Season, Experts Warn
Bloomberg Intelligence analyst James Seyffarth warns that newly approved altcoin ETFs are unlikely to spark a traditional alt season. He anticipates spot funds for DOGE, LINK, XLM, BCH, AVAX, LTC, SHIB, DOT, SOL and HBAR launching in Q4 2025, followed by ADA and XRP soon after. Early Ethereum spot ETF rollouts underperformed due to a rushed launch timeline and continued staking restrictions. Interest in Solana futures ETFs and XRP ETFs remains high but still lags behind Bitcoin spot ETFs. Seyffarth highlights that hybrid ETFs—baskets of multiple crypto assets—could attract more institutional investors than single-asset funds. Meanwhile, treasury companies (DATs) holding Ethereum and Solana reserves are drawing institutional capital by offering reliable yields and an easy on-ramp for traditional finance. Although some DATs may consolidate over time, they currently represent the real altcoin season by dominating institutional demand. Traders should note that single-altcoin ETF launches are unlikely to mirror the price surges seen with Bitcoin and Ethereum spot ETFs.
Neutral
Analyst James Seyffarth argues that new altcoin ETFs will have limited immediate impact on prices due to low initial demand, underwhelming Ethereum ETF rollouts, and continued staking restrictions. While interest in Solana futures ETFs, XRP ETFs and hybrid ETF structures could support institutional flows, single-asset altcoin ETFs are unlikely to replicate the strong price rallies seen in Bitcoin and Ethereum spot ETFs. Treasury companies (DATs) currently dominate institutional demand, representing the true alt season. Overall, market drivers point to a neutral impact: no major surge, but a more institutionalized market with potential for steady capital inflows over time.