tl;dr
Tidal Financial Group introduced the *Quantify 2X Daily AltAlt Season Crypto ETF*, targeting altcoins excluding Bitcoin (BTC) and Ethereum (ETH), aiming to capitalize on surges in mid- and small-cap altcoins. The fund, along with two others—*Quantify 2X Daily Alt Season* (including ETH) and *Quantif...
**The Crypto ETF Wild Card: Tidal’s AltAlt Season Fund Sparks Confusion and Curiosity**
In the ever-evolving world of crypto investing, fund issuers are pushing boundaries with increasingly niche and leveraged products. Enter Tidal Financial Group’s latest offering: the *Quantify 2X Daily AltAlt Season Crypto ETF*, a fund so obscure it left even seasoned analysts scratching their heads.
What’s an “AltAlt”? For starters, “alt” typically refers to cryptocurrencies other than Bitcoin (BTC). But Tidal’s filings suggest a deeper layer: “AltAlt” seems to target altcoins that aren’t just non-BTC, but also exclude Ethereum (ETH). As Bloomberg’s James Seyffart quipped on X, “Alt just excludes BTC, the other excludes both BTC and ETH.” The confusion is understandable. But the fund’s goal? To capitalize on “AltAlt seasons”—periods when mid- and small-cap altcoins surge, following a trickle-down effect after Bitcoin and Ethereum rally.
Tidal isn’t alone in this madness. The firm also filed for two other leveraged crypto ETFs: the *Quantify 2X Daily Alt Season* (which includes ETH and other larger altcoins) and the *Quantify 2X Daily All Cap* (covering BTC, ETH, and everything else). These funds aim to deliver *twice the daily return* of their underlying assets, a feature that comes with a hefty risk profile. “Because the fund seeks daily leveraged investment results, it is very different from most other ETFs,” the prospectus warns. “It is also riskier than alternatives that do not use leverage.”
The funds’ strategies are as complex as they are ambitious. They may use swaps, options, or investments in crypto derivatives or funds to gain exposure to digital assets. For example, the AltAlt ETF initially targets XRP and Solana, while the Alt ETF includes ETH and other larger altcoins. The All Cap fund covers the full spectrum, including Bitcoin.
The move reflects a broader trend: crypto ETF issuers are racing to diversify their offerings. As of late August, the SEC was reviewing over 90 crypto-related products, from leveraged funds to spot ETFs tracking specific altcoins. Regulatory hurdles remain, but recent developments suggest a shift. On Wednesday, the SEC approved new listing standards for commodity-based trusts, easing the path for crypto products.
Analysts are split. Bloomberg’s Eric Balchunas called the AltAlt ETF “a whole [different] story,” joking, “We’re already at 2x AltAlt Season Crypto ETFs and it’s not even October.” Others, like Seyffart, are less convinced. “This feels like a gimmick,” one industry observer said, “but the market’s hungry for anything that promises outperformance.”
For investors, the question isn’t just about understanding the jargon—it’s about weighing the risks. Leveraged funds can amplify losses as quickly as gains, and the crypto market’s volatility makes these products doubly perilous. Yet, for risk-tolerant investors, the allure of tapping into “AltAlt seasons” might be too tempting to ignore.
As the SEC continues its crypto review, one thing is clear: the ETF landscape is becoming as chaotic and unpredictable as the markets it aims to track. Whether Tidal’s latest bet will pay off or crash and burn remains to be seen. But in the world of crypto, where innovation and confusion often go hand in hand, the only certainty is that the game is far from over.