Crypto ETFs Must for a Strong Altcoin Season, Says Bitfinex Executive

Despite the broader crypto market rally, altcoins have faced consistent selling pressure, delaying a full altcoin season.

Analysts believe a major rally won’t happen until spot crypto ETFs are approved.

Altcoin Season on the Pause

Despite Bitcoin’s dominance dropping by 6% over the past month, the altcoin season remains stalled with no major catalysts in sight. Meanwhile, macro uncertainties have increased volatility.

In their crypto market report on August 25, Bitfinex analysts noted that they don’t expect a broad market rally until later this year, when Bitcoin product inflows recover and new investment vehicles for altcoins become available.

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While referring to crypto ETFs, the analysts added: “These products are likely to generate sustained, price-agnostic demand, creating the conditions for a broader re-rating across the digital asset complex.”

The analysts noted that the market currently reflects a weaker appetite for risk at this point in the cycle.

“While capital inflows remain positive, the muted trajectory reflects a more cautious investor base, contrasting with the aggressive demand that characterised previous ATH surges,” they added.

Another popular crypto analyst Michael Van de Poppe warned of harsh corrections in Ethereum and altcoins in general.

He added that investors should position themselves to buy ETH price dips in the range of $3,500-$3,750.

Which Crypto ETFs Will Launch Next?

Asset managers in the US have filed for several crypto ETFs for some of the top altcoins like XRP , Solana , Cardano , HBAR , Dogecoin and others.

Spot Bitcoin ETFs have been active for 19 months, while spot Ethereum ETFs have been around for 13 months. Both have successfully traded on Wall Street, attracting billions in inflows.

The U.S. Securities and Exchange Commission (SEC) has postponed decisions on multiple cryptocurrency ETF applications, including Truth Social’s proposed Bitcoin-Ethereum ETF, Solana-based products from 21Shares and Bitwise, as well as 21Shares’ Core XRP Trust.

However, this hasn’t stopped issuers from bringing new products in the market. A day before, top crypto investment firm Canary Capital has submitted a Form S-1 to the U.S. Securities and Exchange Commission (SEC) seeking approval for an “American-Made Crypto ETF.”

The proposed spot ETF would exclusively include cryptocurrencies originally developed in the United States.

Read original story Crypto ETFs Must for a Strong Altcoin Season, Says Bitfinex Executive by Bhushan Akolkar at Coinspeaker.com

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