"Altcoin ETFs are not likely to grow as much as Bitcoin ETFs"

JH Kim

Summary

Although altcoin ETFs are being launched rapidly, analysis says they are unlikely to show the same growth as Bitcoin ETFs.
Slavin said altcoin ETFs may react sensitively to short-term market price fluctuations, causing repeated inflows and outflows of funds.
Long said the expansion of the virtual asset ETF market could promote market participation by companies and institutions.

Although the launch of altcoin exchange-traded funds (ETFs) is expanding in the United States, an analysis says they are unlikely to show the same growth as Bitcoin (BTC) ETFs.

On the 1st (local time), according to virtual asset (cryptocurrency) specialist media The Block, Ben Slavin, global head of ETFs at BNY Mellon, assessed the altcoin ETF market as "the pace of launches is accelerating and investor demand is being partially confirmed."

However, he predicted, "Unlike Bitcoin ETFs, which hold about 7% of Bitcoin's total circulating supply, altcoin ETFs will not easily expand to this level." He explained that altcoin ETFs have a strong tendency to respond sensitively to market price movements.

Slavin said, "In the short term, altcoin ETFs may see repeated inflows and outflows of funds in response to price fluctuations," and "however, in the long term, investor interest may gradually expand."

In this regard, Monica Long, CEO of Ripple Labs, emphasized that the virtual asset ETF market is in its early stages. She stated, "More than 40 virtual asset ETFs were launched last year, but their share in the U.S. ETF market remains minimal."

She added, "If adoption of virtual asset ETFs expands, corporate and institutional market participation could be accelerated," and "in particular, interest is growing in financial strategies using digital assets and tokenized asset investments, centered on large companies."