Grayscale’s crypto portfolio up 85% driven by altcoin gains

Grayscale’s cryptocurrency holdings surged by 85% in market capitalization in November, driven by substantial gains in altcoins like Stellar (CRYPTO:XLM) and XRP (CRYPTO:XRP).

According to Cryptorank data, Grayscale Trust Investments saw its portfolio rise significantly, primarily due to the remarkable performance of Stellar, which gained over 469%, and XRP, which saw a 262% increase in the past month.

Additionally, the Decentraland (CRYPTO:MANA) metaverse token, which rose by 105%, was among the top gainers in Grayscale’s portfolio.

These altcoin rallies are fueling speculation about the onset of an altcoin season, with analysts predicting further gains in the coming months.

The overall trend has led to growing expectations that an altcoin season could take hold in early 2025.

As Bitcoin (CRYPTO:BTC) dominance fell below a key support level in late November, analysts pointed to this as an indication that investors are shifting from Bitcoin to altcoins.

In particular, there is speculation that XRP could rally to $2.57 by the end of 2024.

According to Ryan Lee, chief analyst at Bitget Research, XRP's price could hit $2.57 by December 2024, with growth potentially driven by Bitcoin’s halving event.

Historically, XRP has experienced substantial growth approximately 228 days after a Bitcoin halving.

Further, developments such as the potential approval of an XRP exchange-traded fund (ETF) could act as a significant catalyst for the coin’s price.

On November 1, asset manager 21Shares filed for an XRP ETF with the US Securities and Exchange Commission (SEC), adding to the anticipation.

Analysts also point to upcoming regulatory shifts, including the potential stepping down of SEC Chair Gary Gensler in January 2025, which may pave the way for more favorable crypto regulations and the approval of additional cryptocurrency-based ETFs.