When Will Altseason Start? Analysts Say ETFs Are the Missing Catalyst

Sean Williams
BITFINEX

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  • Bitcoin dominance has dipped 6%, but altcoin momentum remains muted.
  • Bitfinex analysts argue ETF approvals could unlock a true altseason.
  • Pending SEC reviews include Solana, XRP, and multi-asset crypto ETFs.

Crypto traders anticipating the next altcoin season may have to wait for regulatory approvals to catch up, according to a new Bitfinex markets report. Analysts at the exchange argue that while Bitcoin dominance has declined in recent weeks, a broad altcoin rally is unlikely until crypto ETFs beyond Bitcoin and Ethereum enter the market.

ETF Approvals Could Trigger Demand

Over the past 30 days, Bitcoin dominance has dropped 6%, sparking speculation that an altcoin rally might be imminent. However, Bitfinex analysts caution against premature optimism, noting that the market has yet to see the type of “rising tide lifts all boats” environment typical of previous cycles.

They believe that new crypto ETF products, particularly those covering Solana (SOL), XRP, or even future memecoin-focused funds, could provide the sustained, price-agnostic demand needed to re-rate the altcoin sector. These products would allow institutional and retail investors to move further down the risk curve while remaining in regulated investment vehicles.

Current Market Sentiment: Muted Risk Appetite

The report described today’s crypto environment as showing a “softer appetite for risk”, with investors exercising caution compared to the aggressive buying seen in earlier bull runs. While inflows remain positive, momentum has slowed, reflecting a more conservative investor base.

This cautious stance contrasts with more bullish outlooks from other market observers. David Duong, Coinbase Institutional’s head of research, recently suggested that a full-scale altcoin season could take shape as early as September.

ETF Pipeline: Solana, XRP, and Beyond

The U.S. Securities and Exchange Commission (SEC) is still reviewing several crypto ETF applications, including:

  • Truth Social’s Bitcoin-Ethereum ETF
  • 21Shares and Bitwise Solana products
  • 21Shares Core XRP Trust

If approved, these funds could broaden market access and increase demand for altcoins. Bloomberg ETF analyst Eric Balchunas added that “active” crypto ETFs are likely to come next, with even a memecoin-only ETF potentially arriving by 2026.

For now, the altcoin market remains in a holding pattern, shaped by regulatory uncertainty and measured investor sentiment. While Bitcoin’s dominance has slipped, Bitfinex analysts argue that ETF approvals may be the key catalyst that unlocks the next true altseason. Until then, crypto markets are likely to remain cautious, awaiting the green light from regulators.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses

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