While companies aim for approvals of altcoin-related ETFs, experts foresee limited interest from institutional investors.
Uncertain Demand for Altcoin ETFs
Despite multiple applications for altcoin ETFs, analysts anticipate lower interest compared to Bitcoin and Ethereum ETFs. Katalin Tischhauser, head of research at Sygnum, points out the lack of strong evidence for high demand, estimating inflows of several hundred million to $1 billion, in contrast to over $100 billion in Bitcoin ETFs. Analysts also note that institutional investors might prefer broader crypto index funds over standalone altcoin ETFs.
Grayscale's Plans for a Polkadot ETF
Nasdaq has recently filed to list a Grayscale ETF for Polkadot. This filing is part of the push to expand product offerings for investors interested in altcoin exposure through packaged funds. Additionally, Grayscale has launched several other asset funds capturing cryptocurrencies like Solana and Dogecoin. In the upcoming years, similar ETFs might appear for other altcoins.
Altcoin Season Unlikely in 2025
According to Ki Young Ju of CryptoQuant, an altcoin season is unlikely in 2025, but cryptocurrencies with strong fundamentals might outperform. Experts believe such projects have a better chance of attracting investor interest. Despite general low activity, some assets could grow due to ETF approvals and sustained investor interest.
While the market is cautious about altcoin ETFs, experts advise investors to focus on projects with clear utility and robust financial models.
