Grayscale suggests the third quarter of 2025 represented a distinct altseason, driven partly by Bitcoin underperformance and centralized exchange momentum. The asset manager's analysis shows positive returns across crypto markets, including Bitcoin, Ethereum, AI tokens, and smart contracts.
Despite positive performance, Bitcoin lagged behind other market segments during Q3. The pattern of returns constitutes a crypto alt season, though different from previous periods of falling Bitcoin dominance, according to Grayscale's report.
Smart contract sectors benefited significantly from U.S. stablecoin legislation, likely referencing the GENIUS Act signed in July. Meanwhile, AI tokens, currencies, and Bitcoin posted more modest gains compared to other cryptocurrency categories.
The report identified several market themes contributing to altcoin strength. These include surging crypto #treasuries holding various tokens, greater stablecoin adoption in the U.S., and rising centralized exchange volumes.
Bitcoin reached an all-time high exceeding $120,000 in August, yet its performance still trailed other assets. Research indicates both Bitcoin and #altcoins fell behind gold and stocks in achieving new price records, partly due to stablecoins leaving exchanges.
Grayscale speculates that additional U.S. policies could drive crypto markets in Q4 2025. A digital asset market structure bill pending in Congress represents a potential catalyst for future growth.
As one of the largest asset managers offering cryptocurrency exchange-traded funds, Grayscale maintains an optimistic outlook for #ETF products. The SEC recently approved new listing standards for crypto ETFs, which could boost Q4 performance.
The company already operates multi-asset crypto exchange-traded products, offering exposure to Bitcoin, Ethereum, XRP, Solana and ADA. These products position Grayscale at the forefront of digital asset investment vehicle innovation.