"Altcoin ETFs Unlikely to Match Bitcoin ETF Growth"

While the rollout of altcoin exchange-traded funds (ETFs) is expanding in the U.S., analysts say they are unlikely to post the kind of growth seen by Bitcoin (BTC) ETFs.

According to crypto media outlet The Block on the 1st (local time), Ben Slavin, global head of the ETF business at BNY Mellon, said of the altcoin ETF market 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 won’t be easy for altcoin ETFs to scale to that level." He added that altcoin ETFs tend to react more sensitively to market price movements.

Slavin said, "In the short term, altcoin ETFs could see repeated inflows and outflows as prices fluctuate," adding, "Over the long term, however, investor interest could gradually expand."

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

She continued, "If adoption of crypto ETFs expands, corporate and institutional participation in the market could be brought forward," explaining that "interest is growing—particularly among large companies—in treasury strategies using digital assets and in tokenized-asset investing."