In the dusty corners of the crypto world, where dreams of riches once danced like fireflies in the night, the Bitcoin exchange-traded products have come along and turned the whole notion of a crypto “altseason” on its head. It’s as if the sun rose too early, casting shadows on the once vibrant altcoin fields.
For years, the crypto market waltzed to a familiar tune, a predictable jig of capital rotation. Bitcoin (BTC) would leap into the limelight, drawing in the masses like moths to a flame, and then, like clockwork, the altcoins would bask in the afterglow. Speculative capital would flood into the lower-cap assets, inflating their values in a euphoric frenzy that traders dubbed “altseason.” Ah, the good old days, when dreams were made of pixels and promises!
But lo and behold, what was once taken for granted now shows signs of a structural collapse, like a rickety barn in a storm. Spot Bitcoin exchange-traded funds (ETFs) have shattered records, funneling a staggering $129 billion into the market in 2024. This influx has opened the gates wide for both retail and institutional investors, yet it has also created a vacuum, sucking the life out of speculative assets. Institutional players now have a cozy, regulated way to dip their toes into the crypto waters without the Wild West risks of the altcoin market. Many retail investors, tired of the perilous hunt for the next 100x token, have found ETFs to be a much more appealing option. Even the well-known Bitcoin analyst Plan B traded in his actual BTC for a spot ETF—talk about a plot twist!
The shift is happening right before our eyes, and if the capital remains locked in these structured products, altcoins may find themselves gasping for liquidity and relevance, like a fish out of water.
Is the altseason dead? The rise of structured crypto exposure
//s3.cointelegraph.com/uploads/2025-03/019584a5-8201-7a7c-b10a-05b931bf2bb5″/>
Will venture capital abandon crypto startups?
Venture capital (VC) firms, the lifeblood of alt seasons, have historically injected liquidity into nascent projects, spinning grand narratives around emerging tokens like a spider weaving its web. But now, with leverage easily accessible and capital efficiency taking center stage, VCs are rethinking their approach.
They strive for returns, but the typical range is between 17% and 25%. In traditional finance, the risk-free rate of capital serves as the benchmark, usually represented by US Treasury yields. In the crypto space, Bitcoin’s historical growth rate has become the industry’s version of the risk-free rate. Over the last decade, Bitcoin’s compound annual growth rate (CAGR) has averaged a jaw-dropping 77%, leaving traditional assets like gold (8%) and the S&P 500 (11%) in the dust.
Using this as a baseline, a venture capitalist deploying capital in Bitcoin or Bitcoin-related ventures at this growth rate would see a total ROI of approximately 1,199% over five years—nearly 12 times their investment! It’s like finding a golden ticket in
Read More
- NYM PREDICTION. NYM cryptocurrency
- COW PREDICTION. COW cryptocurrency
- ONT PREDICTION. ONT cryptocurrency
- INJ PREDICTION. INJ cryptocurrency
- IP PREDICTION. IP cryptocurrency
- PSP PREDICTION. PSP cryptocurrency
- EUR INR PREDICTION
- TRU PREDICTION. TRU cryptocurrency
- HBAR PREDICTION. HBAR cryptocurrency
- ZK PREDICTION. ZK cryptocurrency
2025-03-11 16:18