Altcoin Season May Hinge On More Crypto ETFs: Analysts

Altcoins may not see a broad, outsized rally until the approval of crypto ETFs that give investors exposure further down the risk curve, according to analysts from Bitfinex.

Crypto market participants have eagerly awaited an altcoin market rally, or “altseason,” as Bitcoin (BTC) dominance dipped 6% over the past 30 days.

However, Bitfinex analysts said in a markets report on Monday they don’t anticipate a “‘rising tide lifts all boats’ environment” until later in the year when inflows into Bitcoin products regain momentum and new investment vehicles for altcoins are introduced.”

“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 added.

Current crypto market has a “muted trajectory”

The analysts said the current market is showing a “softer appetite for risk at this stage of 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.

Coinbase Institutional’s global head of research, David Duong, had a different take, as he recently said that “current market conditions now suggest a potential shift toward a full-scale altcoin season as we approach September.”

Speculation mounts on which crypto ETFs will launch next

Meanwhile, crypto industry commentators have been speculating on which crypto ETFs might launch next, as spot Bitcoin ETFs have been trading for over 19 months since their January 2024 debut and spot Ether (ETH) ETFs for nearly 13 months since their July 2024 launch.

The US Securities and Exchange Commission (SEC) recently delayed approval decisions on several 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 on ETF momentum

Bloomberg ETF analyst Eric Balchunas said on June 7 that there is a “really good chance” that an ETF that actively trades memecoins will eventually exist. 

“First, we’ll get a slew of active crypto ETFs,” he said, adding that an active memecoin-only fund will likely emerge in 2026.

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