Bloomberg ETF analyst James Seyffart said that the current growth in the altcoin market is not linked to mass retail buying. Instead, he explained, the trend is being driven by corporate treasuries and funds investing in digital assets.
Speaking to Milk Road, he specified that a key role is being played by so-called Digital Asset Treasury Companies (DATCOs) – firms that build reserves in cryptocurrencies and publicly disclose their purchases. These companies are now having the biggest impact on capital allocation among altcoins.
According to Seyffart, one of the clearest examples of this trend is the platform Bitmine, founded by Tom Lee. It recently bought $167 mln worth of Ethereum, topping up its balance for the second time in two days. In total, $4.403 in ETH was introduced into circulation at the time of the deal.
Another major player is BNB Network Company, listed on Nasdaq. The firm added 33 mln in Binance Coin (BNB) tokens to its reserves, bringing the total to 388,888 BNB. The market value of this portfolio is about $330 mln. This makes the company the largest corporate holder of BNB.
Altcoins Regain Ground
Amid these purchases, altcoins have shown stronger dynamics compared to other assets, which are still trading well below the highs of the previous cycle.
Seyffart noted that he does not expect altcoin ETFs to attract inflows as large as bitcoin funds. However, he sees multi-asset products covering several cryptocurrencies as promising.
Has Altseason Already Started?
The current movement continues altseason signals that appeared back in July. At that time, Ethereum rose to $3,458 – its highest since January. This increase was accompanied by institutional inflows into spot ETFs and growing activity among corporate investors. Trading volumes exceeded $2.5 bln per day, while the futures market expanded without overheating.
In August, Coinbase analysts pointed to early signs of an altseason. Since May, bitcoin’s share of total market capitalization fell from 65% to 59%, while altcoins gained more than 50%, reaching $1.4 trln on August 12.
Although the altseason index from Coinmarketcap has not yet crossed its historical threshold, the market structure already indicates a shift toward altcoins. Analysts believe activity could strengthen in September. At the time of writing, the index stood at 50.
