With the pullback of Bitcoin, the altcoin market has ushered in a new dawn. Although Bitcoin fell back after breaking through $100,000, Ethereum rebounded to $3,600, and sectors such as Defi and Layer2 rose generally. The altcoin market is also gradually recovering under the leadership of the bull market. However, the market scene was completely different not long ago. Altcoins fell into a slump, many currencies continued to fluctuate, and investors struggled.
Wall Street’s eyes are once again on the altcoin market
In the recovery process of the bull market, Wall Street capital has once again set its sights on altcoins. With the launch of the Bitcoin spot ETF, Wall Street's institutional layout has brought a new wave of enthusiasm to the entire crypto market. However, unlike the previous focus on mainstream coins, the altcoin ETF has caused a strong response for the first time.
Not long ago, as the price of Bitcoin broke through $99,000, altcoins were almost "silent" and their market value failed to follow effectively. But in the past few weeks, the market has changed dramatically. Solana, XRP, Litecoin, and Chainlink have risen one after another, among which Solana's DEX daily trading volume exceeded $6 billion, and XRP also once soared to $1.63. And today, with Ethereum breaking through $3,600, the entire altcoin sector has ushered in a general rise again.
ETFs become an emerging investment channel in the crypto market
Looking back at the background of this round of altcoin revival, ETF is undoubtedly a key factor. Since the Bitcoin spot ETF was settled by major Wall Street giants such as BlackRock and Fidelity, market liquidity has greatly improved, allowing more investors to smoothly enter the crypto market. With the approval of Bitcoin and Ethereum ETFs, the market's expectations for other altcoins have also reached a climax.
On June 27, asset management giant VanEck submitted Solana’s ETF application to the U.S. Securities and Exchange Commission (SEC) for the first time, followed by 21Shares and other institutions. In August, the SEC’s tough attitude caused this wave of altcoin ETF speculation to subside. However, the situation has changed greatly recently. On November 22, Cboe BZX Exchange once again submitted Solana ETF listing application, and Solana and other currencies’ ETFs ushered in a new round of approval opportunities.
Not only Solana, but also XRP, Litecoin and other currencies have begun to be favored by Wall Street institutions. Recently, Canary Capital submitted an application for spot ETFs for these altcoins. Industry experts predict that in the next two years, spot ETFs for Solana, XRP and others are expected to be approved.
The arrival of the Trump administration brings new hope for altcoin ETFs
Cryptocurrency regulation is also changing, especially as the United States is about to welcome a new president. Trump's stance on cryptocurrencies has been a focus of market attention, and it is expected that he will further relax regulatory policies after taking office. Analysts generally believe that with the resignation of Gary Gensler, chairman of the US SEC, the regulation of altcoins will be more relaxed in the future, especially Solana and XRP, which have relatively optimistic regulatory prospects.
The Trump administration's attitude towards cryptocurrencies has given investors confidence. As policies are gradually relaxed, the approval of ETFs for altcoins is expected to see a breakthrough. In Trump's new administration, many cryptocurrency supporters have become core members, which will undoubtedly promote the further development of the crypto market.
Fund flows behind the altcoin ETF boom
Although altcoin spot ETFs are still facing challenges at the regulatory level, the inflow of funds has begun to show. Taking Bitcoin and Ethereum as examples, the approval process of spot ETFs shows that traditional institutions continue to increase their interest in crypto assets. More and more institutions are looking for suitable investment channels to diversify risks, and the launch of altcoin ETFs is undoubtedly a huge market opportunity.
In the past year, investors' inflows into Bitcoin spot ETFs reached $30.384 billion, while Ethereum's inflows reached $240 million. Although the gap is still large, the market's enthusiasm is undoubtedly continuing to heat up. Moreover, as more and more altcoins enter this emerging market, the productization and standardization process of the entire crypto asset will also accelerate. In the next two years, we are likely to see more altcoin ETFs approved and investors pouring in.
Summary: Prospects and Challenges of Altcoin ETFs
Although the realization of altcoin ETFs still faces strict regulatory requirements, with the market recovery and the policy promotion of the Trump administration, investment opportunities in altcoins are gradually emerging. Although there are still many uncertainties in the current altcoin ETF, it undoubtedly brings new hope to the crypto market. In the coming months, with the changes in the regulatory environment and the further layout of institutional investors, altcoin ETFs are expected to become the new favorite of the cryptocurrency market.
For investors, although the risks of altcoin ETFs cannot be ignored, this is also an investment opportunity worthy of attention. If you can keep up with market trends and seize the opportunity, you may usher in the next wave of wealth.
