As the cryptocurrency market evolves in 2025, analysts are closely observing the potential impact of crypto exchange-traded funds (ETFs) on the anticipated altcoin season. According to analysts at Bitfinex, the onset of an altcoin rally may significantly depend on the approval and launch of various crypto ETFs. These instruments could provide investors with opportunities to venture further down the risk curve, particularly in an environment where Bitcoin (BTC) dominance has decreased by 6% over the past month.
Market participants have expressed a strong desire for an altcoin market rally, often referred to as “altseason.” However, Bitfinex analysts cautioned in a recent report that they do not foresee a “rising tide lifts all boats” scenario until later in 2025. They emphasize that this delay is contingent upon a resurgence of inflows into Bitcoin products and the introduction of new investment vehicles tailored for altcoins.
“These products are likely to generate sustained, price-agnostic demand, creating the conditions for a broader re-rating across the digital asset complex,”
the analysts stated.
Currently, the market displays a “softer appetite for risk,” reflecting a more cautious investor base compared to the aggressive demand seen during previous all-time high (ATH) surges. While capital inflows remain positive, the analysts noted that the muted growth trajectory signals a shift in investor sentiment.
In contrast, David Duong, the global head of research at Coinbase Institutional, has provided a different perspective. He mentioned that the current market conditions could indicate a potential shift towards a full-scale altcoin season as September approaches. This divergence in viewpoints highlights the complexity of predicting market trends in the dynamic cryptocurrency landscape.
As discussions surrounding the launch of new crypto ETFs intensify, speculation continues about which products may enter the market next. Spot Bitcoin ETFs have now been active for over 19 months since their debut in January 2024, while spot Ether (ETH) ETFs have been trading for nearly 13 months following their launch in July 2024. However, the U.S. Securities and Exchange Commission (SEC) has recently postponed approval decisions on several crypto ETF applications. These include products from Truth Social’s Bitcoin-Ethereum ETF, Solana (SOL) offerings from 21Shares and Bitwise, and 21Shares’ Core XRP Trust.
Bloomberg ETF analyst Eric Balchunas recently commented on the future of crypto ETFs, suggesting that there is a “really good chance” of an actively traded memecoin ETF eventually being launched. He stated,
“First, we’ll get a slew of active crypto ETFs,”
adding that an active memecoin-only fund is likely to emerge in 2026.
As we move further into 2025, the cryptocurrency community remains hopeful for an altcoin season, albeit with an understanding that the rules of engagement may have shifted due to evolving market conditions and the potential introduction of new financial products.
For more information on the current state of the cryptocurrency market and the implications of ETF launches, please refer to the original article on Cointelegraph.
