"Altcoin ETFs unlikely to grow as easily as Bitcoin ETFs"

Altcoin exchange-traded fund (ETF) launches are expanding in the United States, but an analysis suggests it will be difficult for them to post growth on par with Bitcoin (BTC) ETFs.

According to crypto-focused media outlet The Block on the 1st (local time), Ben Slavin, global head of ETFs at BNY Mellon, assessed the altcoin ETF market, saying that "the pace of launches is accelerating and some investor demand is being confirmed."

However, he projected that "unlike Bitcoin ETFs, which hold about 7% of Bitcoin’s total circulating supply, it will not be easy for altcoin ETFs to expand to that level." He added that altcoin ETFs tend to react sensitively to market price moves.

Slavin said, "In the short term, altcoin ETFs may see repeated inflows and outflows depending on price fluctuations," adding that "over the long term, investor interest could gradually broaden."

In this regard, Monica Long, president of Ripple Labs, stressed that the crypto ETF market is still in its early stages. She noted that "more than 40 crypto ETFs were launched last year, but their share of the U.S. ETF market remains negligible."

She continued, "If crypto ETF adoption expands, it could pull forward market participation by companies and institutions," explaining that "interest is growing—particularly among large corporations—in treasury strategies using digital assets and in investments in tokenized assets."