TechFlow news, September 5 — According to Cryptoslate, Bloomberg ETF analyst James Seyffart said the current market shows an altcoin rally driven by digital asset financial companies (DATCOs) rather than price increases in traditional tokens.
Seyffart noted that institutional investors are showing greater preference for multi-cryptocurrency portfolio products over single altcoin ETFs. Currently, Grayscale and Bitwise's cryptocurrency basket products are awaiting approval from the U.S. Securities and Exchange Commission (SEC). Bitwise's product includes 10 crypto assets, while Grayscale's offering comprises 5 cryptocurrencies weighted by market capitalization.
He emphasized that institutional capital prefers gaining exposure to cryptocurrencies through regulated products rather than direct token holdings, and this structural shift could permanently alter the pattern of altcoin rallies.
