Altcoin enthusiasts may need to wait longer for the next big rally, as Bitfinex analysts predict that an altseason—a period when altcoins outperform Bitcoin—won’t begin until more cryptocurrency ETFs hit the market.
Why ETFs Matter for Altseason
According to Bitfinex’s market report, the approval of new crypto exchange-traded funds (ETFs) could trigger strong, price-agnostic demand across the altcoin market. Analysts believe these investment products will open the door for traditional investors, helping create a broader re-rating of digital assets beyond Bitcoin.
Currently, Bitcoin dominance remains high at 58.58%, even after dipping 6% in the past month, which limits the growth potential for altcoins.
The analysts described the crypto market’s trajectory as muted, with a softer appetite for risk than during previous bull cycles:
- Capital inflows remain positive but lack the aggressive demand seen during past all-time highs.
- Investors appear cautious, waiting for clear bullish signals and new ETF approvals.
Industry Speculation: Which ETFs Are Next?
The market is now speculating on upcoming ETF products, following the success of:
- Spot Bitcoin ETFs (live since January 2024)
- Spot Ether ETFs (live since July 2024)
Pending ETF applications include:
- Truth Social’s Bitcoin-Ethereum ETF
- Solana ETFs by 21Shares and Bitwise
- 21Shares’ Core XRP Trust
Bloomberg ETF analyst Eric Balchunas expects active crypto ETFs to launch soon and even predicts a memecoin-only ETF by 2026.
The Altcoin Season Index currently sits at 46/100, suggesting no clear altseason trend yet.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.