Bloomberg Insights: Five Spot Altcoin ETFs Set to Launch as Bitcoin Sees Capital Drain

Recent data from Bloomberg reveals that five new spot altcoin ETFs are set to launch soon, coinciding with a dip in Bitcoin's capital as leading altcoins like Ethereum (ETH), Solana (SOL), and Ripple (XRP) attract positive capital inflows. This article covers the upcoming ETFs, market trends, and expert predictions regarding altcoin performance.

Key Takeaways

Five new spot altcoin ETFs are expected to launch, including significant names like the Grayscale Dogecoin ETF and the Bitwise DOGE ETF.
Bitcoin is currently seeing negative capital flows, while altcoin ETFs are flourishing with significant inflows.
Analysts predict a year-end rally for altcoins, with potential price targets set for ETH at $3,200, XRP at $3, and SOL at $150.
The upcoming altcoin ETF season is anticipated to create robust trading opportunities for both retail and institutional investors.

Upcoming Altcoin ETFs Amid Bitcoin's Decline

Bloomberg's intelligence data indicates that five spot altcoin ETFs are set to launch within the upcoming six days, with major altcoins like ETH, SOL, and XRP currently seeing encouraging capital flows.

Following the introduction of the Fidelity Solana Fund and the Canary Marinade Solana ETF, five additional altcoin ETFs are expected to debut in early December. These include the Grayscale Dogecoin ETF, the Grayscale XRP Trust, the Franklin XRP ETF, the Bitwise DOGE ETF, and the Grayscale Chainlink Trust.

Bloomberg Senior ETF analyst Eric Balchunas noted that in addition to the five spot ETFs, a significant number—over 100—are anticipated to be introduced over the next six months.

Expert ETF analyst James Seyffart mentioned that he is tracking more than 150 ETFs awaiting launch, hinting at a wave of both altcoin spot and leverage products entering the market soon.

“Starting with Solana, we can anticipate a massive influx of altcoin ETFs, especially since we’ve already seen about four approved XRP ETFs generating considerable interest in their first month,” Seyffart remarked.

Bitcoin's Declining Value vs. Rising Altcoin ETFs

Recent data from SosoValue highlights a troubling trend for Bitcoin, where U.S. BTC spot ETFs are seeing negative cash flows.

In the last 24 hours alone, Bitcoin spot ETFs recorded a net outflow of $151.08 million, contrasted against the positive inflows for altcoin ETFs: +$96.6 million for ETH, +$164.04 million for XRP, and +$57.99 million for SOL.

Bloomberg Insights: Five Spot Altcoin ETFs Set to Launch as Bitcoin Sees Capital Drain

According to Matthew Sigel, head of digital asset research at VanEck, Bitcoin's downturn was primarily driven by U.S. market conditions, influenced by tightening liquidity and growing credit spreads as fears of AI capital expenditures merge with a delicate funding environment.

Contrarily, Bitwise CIO Matt Hougan argues that this capital shift from Bitcoin is creating new opportunities for altcoins to better capture their inherent value.

“Tokens are becoming more proficient at value capture. For instance, take UNI, ETH, and XRP,” Hougan commented.

He emphasized the upcoming Fusaka upgrade for ETH, set for December, which is projected to enhance its value capture significantly.

“The Fusaka upgrade (expected in December) is pivotal for increasing token value capture, yet surprisingly, very few people are discussing it,” he noted.

He also pointed out the investor interest in XRP, as the community looks toward concepts like staking that could shift the economics for token holders.

Analyst Predictions for Year-End Altcoin Rally

Ray Youssef, the founder and CEO of crypto superapp NoOnes, shared insights with Cryptonews, suggesting that the introduction of these ETFs creates a reliable inflow channel, acting as a buffer against recent selling pressure.

“We are already observing early signs of this, especially with Solana ETFs defying the outflow trend plaguing Bitcoin ETFs, which have suffered significant losses,” he remarked.

Youssef also highlighted the strong performance of U.S. XRP ETFs, which have seen inflows surpassing $420 million over six consecutive days, including more than $250 million on their inaugural trading day—the best launch day performance witnessed this year.

“The beginning of the altcoin ETF season signifies that both retail and institutional investors can now gain extensive exposure to a diversified range of high-beta altcoins effectively,” he added.

While urging caution about expecting an immediate market turnaround due to a volatile macro environment, Youssef is optimistic that ETF momentum could bolster selective altcoin exposure.

This trend could lead to new price discovery for altcoins once Bitcoin stabilizes, with predictions suggesting that “the momentum from the altcoin ETF season could spark an end-of-year rally, pushing Ether above $3,200*, XRP to reach* $3*, and Solana to reclaim* $150*, assuming the ETF demand remains steady and macro volatility decreases.”*