A major rally in altcoins may remain out of reach until regulators approve more exchange-traded funds (ETFs) tied to assets beyond Bitcoin and Ethereum, according to Bitfinex researchers.
While many traders have been waiting for the start of a new “altseason,” the firm’s analysts noted that Bitcoin’s dominance has already slipped about 6% in the past month. Even so, they argue that altcoins won’t see strong, across-the-board momentum until later this year.
“We don’t expect a broad-based upswing until fresh inflows return to Bitcoin products and new ETF structures open the door to riskier digital assets,” Bitfinex said in its Monday report.
The team believes that once these products launch, they will generate steady inflows regardless of market conditions, creating the foundation for a wider revaluation across crypto markets.
Market still cautious
Bitfinex also highlighted that investor appetite remains subdued compared to previous bull cycles. Capital inflows are still positive, but the pace is slower, reflecting a more conservative stance from participants who were once more aggressive near all-time highs.
However, not everyone agrees. David Duong, head of research at Coinbase Institutional, recently suggested that conditions are already tilting toward a potential full-scale altcoin rally heading into September.
Which ETFs come next?
Attention has now shifted to what crypto ETFs regulators will greenlight next. Spot Bitcoin funds have been active for over a year and a half since launching in January 2024, while Ether ETFs have been trading since July 2024.
The U.S. Securities and Exchange Commission (SEC) has recently postponed rulings on several new applications, including Truth Social’s proposed Bitcoin-Ethereum ETF, Solana products filed by 21Shares and Bitwise, and 21Shares’ Core XRP Trust.
Bloomberg’s ETF specialist Eric Balchunas has even predicted that actively managed crypto ETFs will become common, eventually paving the way for a fund dedicated solely to memecoins — something he expects could arrive as soon as 2026.
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