Bloomberg analyst James Seyffart has confirmed that the altcoin season is underway, driven primarily by institutional treasury activities rather than Bitcoin ETFs. Digital asset treasury companies (DATCOs) are fueling market growth, with significant purchases in key altcoins.
Tom Lee's BitMine added $167 million worth of Ethereum (ETH) to its balance sheet, marking its second consecutive purchase in just two days. This follows a previous $358 million buy, solidifying BitMine's substantial ETH holdings and contributing to Ethereum's outperformance in the broader market over the past month.
Similarly, Nasdaq-listed BNB Network Company expanded its Binance Coin (BNB) holdings by $33 million, bringing its total BNB treasury to approximately $330 million and making it the largest corporate holder of BNB globally. Seyffart emphasized that corporate treasury investments are the core driver behind the current altcoin momentum, noting that altcoin investment products lack the same demand as Bitcoin-focused funds.
Other altcoins like XRP are also seeing institutional interest, with Japanese firm Gumi disclosing a $17 million purchase in August, aligning with its expansion into financial services and cross-border payments. Historical patterns suggest that large institutional allocations often precede broader altcoin expansions, with Ethereum serving as a bellwether for the sector.