In the opinion of Bitfinex analysts, a genuine altcoin rally may not commence until further crypto exchange-traded funds (ETFs) go live, providing investors with greater exposure outside of Bitcoin.
Even though Bitcoin dominance dropped by as much as 6% in the last month, the much-hyped “altseason” remains an elusive dream. In a recent market update, Bitfinex researchers elaborated that the market cannot expect to see a “lift-all-boats” style of a surge until later this year once ETF inflows into Bitcoin stabilize and new altcoin-dedicated funds receive regulatory approval.
The analysts explained that such investment products would be able to attract stable demand, immune to short-term price fluctuations, and ultimately pave the way for improved altcoin performance.
Until that point, however, the crypto market is indicating more subdued sentiment. Positive inflows do still exist, but they miss the hard-charging buying witnessed in earlier bull cycles, demonstrating what Bitfinex refers to as a “muted trajectory.”
Not everyone shares this view. David Duong, who leads research at Coinbase Institutional, recently suggested that conditions may already be aligning for a major altcoin rally as September approaches.
At the same time, everyone is waiting to see which crypto ETFs will get approved next by regulators. Spot Bitcoin ETFs debuted in early 2024, and Ether ETFs debuted a year later. The U.S. SEC has put some pending applications on hold, including those with Solana (SOL), XRP, and a combined Bitcoin-Ethereum fund under consideration by Truth Social.
Bloomberg’s ETF analyst Eric Balchunas even theorized earlier this year that more experimental products, such as a fund focusing on the memecoins only, might become a reality as early as 2026.
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