Bitfinex Analysts Say Altseason May Depend on Crypto ETF Expansion

Altcoins may not see significant gains until the approval of new crypto ETF products that extend beyond Bitcoin and Ethereum, according to a fresh markets report by Bitfinex ￰0￱ Bitcoin’s dominance has already slipped by 6% over the past month, analysts remain cautious, suggesting that a broader altcoin rally is unlikely in the near ￰1￱ report highlights that the present state of the crypto market reflects “a softer appetite for risk at this stage of the cycle.” Despite positive inflows into digital assets, Bitfinex notes that the pace is subdued compared with the sharp surges seen during previous all-time ￰2￱ appear more careful this time around, avoiding aggressive ￰3￱ Market Conditions Remain Restrained Bitfinex analysts explained that they do not expect a “rising tide lifts all boats” moment until Bitcoin ETFs attract stronger inflows again and new investment products tailored for altcoins enter the ￰4￱ products, they argue, could create “sustained, price-agnostic demand” and establish the foundation for a broader revaluation across altcoins.

However, not all experts share this restrained ￰5￱ Institutional’s global head of research, David Duong, recently suggested that market conditions may soon tilt in favor of a full-scale altcoin season, possibly emerging as early as ￰6￱ Over Next Wave of ETF Approvals Much of the industry’s focus has shifted toward the regulatory landscape for crypto ￰7￱ Bitcoin ETFs have now been trading for over 19 months since their approval in January 2024, while spot Ether ETFs marked their first year in July ￰8￱ attention is now on which products the ￰9￱ and Exchange Commission (SEC) might approve ￰10￱ SEC has recently postponed decisions on a range of applications, including a Bitcoin-Ethereum hybrid ETF from Truth Social, Solana funds proposed by 21Shares and Bitwise, and 21Shares’ Core XRP ￰11￱ delays have fueled debate on how quickly altcoin-focused ETFs will make it to market and what impact they might have once ￰12￱ ETF analyst Eric Balchunas has gone a step further, predicting that active crypto ETFs will expand in the coming years, even suggesting that a memecoin-only ETF product could debut as soon as ￰13￱ such a product might seem unconventional, he noted that the market’s appetite for experimentation makes it a realistic possibility.