Analysts from Bitfinex suggest that altcoins might not experience a significant rally until crypto ETFs are approved, allowing investors to access higher-risk opportunities.
Crypto enthusiasts are eagerly anticipating an altcoin market surge, or “altseason,” particularly after Bitcoin (BTC) dominance fell by 6% in the last month.
In a market report on Monday, Bitfinex analysts stated that they do not expect a “’rising tide lifts all boats’ scenario” until later in the year, when Bitcoin product inflows pick up and new altcoin investment options become available.
“These products are likely to create sustained, price-agnostic demand, setting the stage for a broader re-evaluation across the digital asset landscape,” the analysts noted.
Current crypto market shows a “muted trajectory”
The analysts indicated that the present market is demonstrating a “softer appetite for risk at this phase of the cycle.”
“Although capital inflows continue positively, the restrained trajectory reflects a more cautious investment base, differing from the intense demand seen during past ATH increases,” they remarked.
David Duong, Coinbase Institutional’s global head of research, offered a different perspective, suggesting that “current market conditions indicate a possible shift towards a full-scale altcoin season as we approach September.”
Speculation rises on upcoming crypto ETF launches
Additionally, industry experts are speculating on the next potential crypto ETF launches, noting that spot Bitcoin ETFs have been 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 US Securities and Exchange Commission (SEC) has recently postponed decisions on various crypto ETF applications, including Truth Social’s Bitcoin-Ethereum ETF, Solana (SOL) products from 21Shares and Bitwise, and 21Shares’ Core XRP Trust.
Related: Altcoin, Ethereum Google searches hit multi-year highs driven by ETF momentum
Bloomberg ETF analyst Eric Balchunas mentioned on June 7 that there is a “strong likelihood” that an ETF dedicated to trading memecoins will eventually emerge.
“Initially, we’ll see a series of active crypto ETFs,” he remarked, predicting that a memecoin-only fund could come to fruition in 2026.
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