Altseason Dreams on Pause: ETFs Could Ignite the Next Bull Run
With Bitcoin dominance declining 6% over the last 30 days, traders in the cryptocurrency market have been anxiously anticipating an altcoin market resurgence, or altseason. However, according to Bitfinex analysts, a broad, disproportionate rally in altcoins might not occur until crypto ETFs that provide investors with exposure lower down the risk curve are approved.
These products are likely to generate sustained, price-agnostic demand, creating the conditions for a broader re-rating across the digital asset complex.
Bitfinex analysts
Risk Appetite Fades, but Coinbase Predicts Altcoin Rally by September
At this point in the cycle, the market is displaying a lower appetite for risk, according to the analysts.
While capital inflows remain positive, the muted trajectory reflects a more cautious investor base, contrasting with the aggressive demand that characterised previous ATH surges
Bitfinex analysts
The head of global research at Coinbase Institutional, David Duong, holds a different opinion. According to him, current market dynamics suggest that as September draws near, there may be a shift toward a full-scale altcoin season.
Crypto ETF Buzz: Which Products Will the SEC Approve Next?
Meanwhile, crypto industry commentators have been speculating on which crypto ETFs might launch next. Spot Bitcoin ETFs have been trading for over 19 months since their January 2024 debut, while spot Ether ETFs have been active for nearly 13 months since their July 2024 launch. On the other hand, several crypto ETF applications, such as Truth Social’s Bitcoin-Ethereum ETF, 21Shares’ Core XRP Trust, and Bitwise’s and 21Shares’ Solana products, have had their clearance decisions postponed by the US Securities and Exchange Commission (SEC).
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