Analysts from Bitfinex suggest that a widespread altcoin rally may not occur until cryptocurrency ETFs are approved, allowing investors to explore greater risks.
With Bitcoin (BTC) dominance falling 6% over the last month, crypto market participants eagerly anticipate an altseason.
As of publication, Bitcoin dominance is at 58.58%. Source TradingView
However, Bitfinex analysts noted in their Monday market report that they don’t foresee a “‘rising tide lifts all boats’ scenario” until later this year when Bitcoin inflows pick up and new altcoin investment vehicles are introduced.
“These products are likely to foster sustained, price-agnostic demand, setting the stage for broader re-rating across digital assets,” the analysts stated.
The current crypto market reflects a “muted trajectory”
The analysts mentioned that the current market exhibits a “softer appetite for risk at this point in the cycle.”
“While capital inflows continue positively, the subdued trajectory signifies a more cautious investor base, unlike the aggressive demand seen during previous all-time highs,” they explained.
Conversely, David Duong, global head of research at Coinbase Institutional, expressed a differing view, suggesting that “current market conditions indicate a potential transition to a full-fledged altcoin season as September approaches.”
Speculation on upcoming crypto ETFs intensifies
In related news, discussions around which crypto ETFs might be launched next are rampant, with spot Bitcoin ETFs being active for over 19 months since their January 2024 introduction and spot Ether (ETH) ETFs for nearly 13 months since their July 2024 debut.
The Altcoin Season Index is currently at a score of 46 out of 100. Source: CoinMarketCap
The US Securities and Exchange Commission (SEC) has recently postponed decisions on several crypto ETF applications, including Truth Social’s Bitcoin-Ethereum ETF, Solana (SOL) products from 21Shares and Bitwise, as well as 21Shares’ Core XRP Trust.
Related: Interest in Altcoin and Ethereum surges with ETF momentum hitting multi-year highs
On June 7, Bloomberg ETF analyst Eric Balchunas asserted there is a “strong likelihood” that a memecoin trading ETF will eventually emerge.
“Initially, we’ll see a wave of active crypto ETFs,” he remarked, predicting that an active memecoin-only fund will likely appear by 2026.
Magazine: The arrival of Altcoin season 2025 is imminent… but the rules are evolving
