155 altcoin ETFs await SEC nod – Could approval ignite the next alt season?
Key Takeaways
Will approval of altcoin ETFs spark an alt season?
Liquidity underneath $100 billion and BTC dominance close to 60% nonetheless restrict upside, however an ETH-led restoration may change that.
What do analysts take into consideration the huge altcoin ETFs underneath evaluation?
Over 150 ETF filings, led by Solana, counsel TradFi prefers diversified crypto index publicity over single tokens.
The altcoin rush appears to be build up. Based on Bloomberg ETF Analyst Eric Balchunas, there are 155 crypto ETPs pending purposes monitoring 35 totally different digital property, principally dominated by Solana [SOL].
Solana filings ready for the SEC choice have been 23, Ripple [XRP] and new Ethereum [ETH] purposes have been at 20 and 10, respectively. Diversified or basket index monitoring a number of crypto property had vital curiosity from 10 issuers.
Balchunas added that this may very well be just the start of the crypto rush.
“May simply find yourself seeing over 200 hit the market within the subsequent 12 months. Complete land rush.”
Essentially the most-awaited purposes like Spot SOL and XRP ETFs have been anticipated to be signed off on in October. However the ongoing U.S authorities shutdown has messed with the timeline.
Will SEC spark an altcoin season?
ETF Retailer’s Nate Geraci, nevertheless, doubted that TradFi will soar all these altcoins. As a substitute, he projected that they could go for indexes monitoring a basket of crypto property.
“No approach tradfi traders able to navigate all of those single tokens. They’re going to take a diversified, shotgun method to an rising asset class.”
That mentioned, the latest altcoin sell-off was petering out, as proven by the easing of Altcoins Alternate Influx.
Easing inflows, shrinking liquidity
Supply: CryptoQuant
Whereas this might increase the chances of a broader altcoin market restoration, liquidity has dropped considerably since mid-October.
Stablecoins Alternate Influx, which tracks ecosystem liquidity, dropped under $100 billion for the primary time since July. Previous liquidity declines coincided with Bitcoin [BTC] worth consolidation or pullbacks that weighed on the altcoins, too.
In Q1 2025, for instance, the liquidity dropped by half from over $160 billion to under $80 billion. BTC worth slumped 30% from $109K to $70K.
Supply: CryptoQuant
Apparently, the liquidity setting improved in Q2, and BTC additionally recovered to over $126K, lifting some altcoins like Hyperliquid [HYPE] with it.
BTC dominance indicators combined setup
One other altcoin season tracker, the BTC dominance, stayed under 60% at press time, suggesting that an altcoin surge may very well be possible if liquidity improves and ETH leads the restoration.
Supply: TradingView (BTC Dominance vs ETH/BTC ratio)
In the meantime, the Altcoin Season Index reading was almost impartial (at 43), indicating that it was a agency BTC season.
