Bloomberg analyst James Seyffart recently declared the beginning of the altcoin season, attributing it to institutional companies adding significant volumes to their treasuries. Following his announcement, BitMine, under the leadership of Tom Lee, made its second major Ethereum $4,414 purchase, acquiring Ethereum worth $167 million within a short period.
Institutional Impact on the Altcoin Market
In an interview with Milk Road, Seyffart emphasized the important role institutional companies play in the altcoin market. He noted that during times when individual investors remain limited, large-scale corporate purchases are becoming a fundamental driving force for prices. Seyffart highlighted that crypto treasury firms, known briefly as DATCO, are significantly accumulating altcoins.
One of the most notable examples of this trend was the recent $33 million additional purchase by BNB Network Company, listed on Nasdaq. The company’s holding of 388,888 BNB has a total value of approximately $330 million, making it the world’s largest institutional investor in BNB.
Seyffart also stressed that altcoin-based investment products cannot be compared with Bitcoin $0.000015 ETFs. However, products focusing on multi-asset portfolios have more potential to attract institutional capital. Canary Capital’s submission to the SEC for an “American-Made Crypto ETF” inclusive of U.S.-linked altcoins like XRP, SOL, and ADA is among the prominent developments.
BitMine’s Strategic Ethereum Purchases
BitMine, headed by Tom Lee, has accelerated its Ethereum acquisitions. The company, after purchasing around 14,665 ETH for approximately $358 million last week, included another 38,708 ETH worth $167 million in its portfolio. Resultingly, BitMine’s Ethereum treasury now exceeds a total value of $8 billion.
Ethereum’s price has outperformed the market over the last month. Additionally, significant transactions such as Galaxy Digital’s sale of 14,665 ETH and FalconX moving over 65,000 ETH to new wallets have heightened institutional activity in the market. These large-scale transfers coincide with Ethereum’s robust price performance.
Institutional purchases in the altcoin market are not limited to Ethereum. Japanese gaming and blockchain firm Gumi announced a purchase of XRP worth $17 million. Moreover, Galaxy Digital partnered with Mill City Ventures to launch a $450 million SUI treasury program. Such investments indicate that altcoins are increasingly finding strategic places in institutional portfolios.
