An interesting perspective raised by crypto analyst Andrew Kang relates to why approval of various Bitcoin ETF products should pay higher long-term dividends specifically for altcoins than Bitcoin itself.
His core thesis centers around the gradual, smoothing effect ETF-driven capital flows should have on Bitcoin price action. Rather than wild 20%+ daily swings, institutional buy-in creates a price trajectory biased higher but with more muted, consistent trends on balance day-to-day.
Why Slower and Steadier Benefits Altcoins
This “Goldilocks” environment proves ideal for altcoin risk appetites for a few key reasons. First, diminished volatility diminishes active trader interest, which tends to get distracted by the newest shiny objects. A grinding Bitcoin uptrend establishes baseline confidence measures across crypto more broadly.
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Show more +And with Bitcoin rising but at a pace unlikely to deliver overnight 10x windfalls anymore, the door opens for investors to augment returns by drifting down the risk curve towards more speculative small and mid-cap opportunities.
The combined impact suggests altcoins should benefit disproportionately from this steady setup, allowing conviction and positions to slowly build over an extended time horizon rather than everything coming down to unpredictable boom and bust cycles.
While Bitcoin ETF approval marked a monumental point for crypto validation and adoption, the secondary effects on market structure and participant behaviors point to altcoins posting outsized gains over many years yet to come. Their agility to rapidly onboard new niches of users primes major expansion ahead.
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