The world of cryptocurrency is witnessing a tectonic shift, according to James Seyffart, a senior ETF analyst at Bloomberg. In an enlightening conversation with Jay Hamilton from Milk Road, Seyffart shed light on the evolving landscape of altcoins, emphasizing the emergence of a “corporate” altcoin season, fueled by institutional adoption and the rise of Digital Asset Treasury Companies (DATCOs). This fresh twist could redefine the playbook for crypto investors as we inch towards the end of 2025.
Institutional Momentum and the New Altcoin Season
Institutional capital—long the holy grail for crypto enthusiasts—appears to be taking center stage in the current market dynamics. Seyffart argues that the traditional four-year cycle theory, which many investors have relied on, has “lost a lot of value” in this cycle. “I don’t think we’re going to see that 80% drop-off this time,” he remarked, suggesting that the market’s previous volatility may become a relic of the past. This follows a pattern of institutional adoption, which we detailed in our analysis of corporate treasury investments.
DATCOs, he believes, are now driving the market, with their influence visible in the public markets. “They’ve been on absolute fire,” Seyffart said, highlighting how these companies are absorbing the momentum that would typically fuel a traditional altcoin season. This shift is not just about altering timelines; it’s about altering expectations. Institutional money is now the driving force behind Bitcoin and Ethereum’s performance, creating a more stable but complex market environment.
Altcoin ETFs: A Different Beast
While the crypto community buzzes with anticipation for altcoin-based ETFs, Seyffart offers a tempered perspective. Unlike the explosive launches of Bitcoin and Ethereum ETFs, altcoin ETFs may not see the same windfall. “These are longer tail assets,” he noted, emphasizing that expecting altcoin ETFs to match Bitcoin’s $40 billion inflows is unrealistic.
Yet, not all experts share this cautious view. Steve McClurg, CEO of Canary Capital, recently predicted that XRP spot ETFs could rake in $5 billion in their first month, leveraging XRP’s strong recognition on Wall Street. While XRP might stand out, Seyffart remains skeptical that other altcoins will capture the same level of institutional interest. This skepticism is echoed in our coverage of how the best altcoins thrive amid mainstream adoption.
Diversification: The Name of the Game
Seyffart also pointed to the potential of basket products—ETFs that combine multiple altcoins—as a more attractive proposition for institutional investors. These products offer the diversification that investment advisors and portfolio managers seek, potentially drawing more significant interest than single-asset ETFs. “They won’t capture the same institutional capital as Bitcoin and Ethereum ETFs, but they’ll be trading vehicles,” he reiterated, suggesting that a diversified approach might be the key to unlocking institutional wallets.
As we move forward in this intriguing year for cryptocurrencies, the quest for balance between innovation and stability continues. The evolving narrative around institutional adoption and altcoin seasons raises questions about the future trajectory of digital assets. Will the “corporate” altcoin season sustain its momentum, or are we on the cusp of yet another market metamorphosis? One thing is certain: the crypto landscape is anything but predictable, and that’s precisely what keeps investors on their toes.
Source
This article is based on: ‘Corporate’ Altcoin Season? Expert Shares How Crypto ETFs, Treasuries Could Change The Market
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
