Bloomberg Intelligence Analyst James Seyffart, a guest on the Coin Bureau Podcast, evaluated the outstanding performance of the XRP and Solana ETFs, the expectations of the imminent launch of the Dogecoin and Chainlink ETFs, and the latest situation in the altcoin market.
The cryptocurrency ETF market has entered a new era with the launch of Bitwise and Canary's XRP and Solana ETFs. Bloomberg Intelligence Senior Analyst James Seyffart spoke with Coin Bureau's Nic about the record-breaking inflows of these new-generation crypto funds and the future of the industry.
Exceptional Performance of XRP and Solana ETFs
According to James Seyffart, XRP and Solana-based ETFs have performed “extraordinarily well” since their launches. Seyffart noted that Bitwise's Solana ETF and Canary's XRPC ETF were the top two ETF launches in the US by volume of the year.
He noted that this success is evidence of strong retail investor demand for altcoins despite challenging market conditions. For example, Canary's XRPC continued to see approximately $15 million in daily inflows, excluding its $240 million initial capital on launch day.
Upcoming ETF Launches and Market Trends
Seyffart noted that with the SEC restarting its operations after the government shutdown, the next wave of ETFs is on the way, with Dogecoin and Chainlink ETFs set to be the next assets to be launched.
Grayscale's Chainlink Trust will likely be converted into an ETF on December 2, while Bitwise's Dogecoin ETF is expected to launch on November 26.
He also noted that BlackRock's application for an ETF offering the option of staking the asset Ethereum (ETH) is a “unique strategy” due to potential tax implications for investors.
The Maturing Altcoin Market and Future Outlook
Speaking about the current state of the altcoin market, Seyffart suggested that “altcoin season” may have already occurred, but that this interest is directed not directly at altcoins, but rather at Digital Asset Trusts (DATs) and crypto mining companies. He added that with this market maturation, investors seeking high beta/leverage now have the option of turning to structured financial products like options on Bitcoin ETFs instead of altcoins.
Seyffart predicted that in the long term, the market will shift its focus to “basket products” (index ETFs) containing multiple altcoins, rather than individual altcoin ETFs. He argued that these basket products will facilitate entry into the crypto market by spreading risk for institutional investors and advisors.