According to a report from Citi analysts on January 9, given that Ethereum is the only major cryptocurrency approved as a spot ETF base (besides Bitcoin), it could be a rotation target. The performance of other cryptocurrencies and altcoins is even more significant, indicating that some market participants expect a 'altcoin season' in 2025 after a strong year for Bitcoin.
Citi analysts say that new policy support will help solidify the legitimacy of altcoins in the market, potentially driving up prices. Bitcoin is classified as a commodity and already has traditional financial trading instruments like spot ETFs and futures. In contrast, the definition of other crypto assets is less certain, and the range of investment options is more limited.
Analysts added that, compared to Bitcoin, further policy support will provide a significant boost for altcoins.
