Altcoin
Why could Ethereum ETFs spark the next big altcoin season?
The news of the approval of Ethereum ETFs by the US SEC has sparked reactions in the crypto community. At the same time, some popular cryptocurrency traders and analysts, including Ash Crypto, Sajad, and Virtual Bacon, have shared their views regarding the implications of such a move for the broader altcoin market.
Why is ETH Spot ETF approval more important than Bitcoin ETF?
Ash Crypto has highlighted several critical points regarding the impact of ETH ETFs, the biggest and most important of which is the potential change in the regulatory landscape. Popular cryptocurrency trader and analyst Ash Crypto noted, “The SEC has said that every altcoin is a stock,” but with the approval of ETH ETFs, other altcoins that operate similarly to Ethereum may no longer be classified as stocks . This change could alleviate the legal uncertainties surrounding many altcoins that hold initial coin offerings (ICOs).
He also highlighted the BTC ETF cycle, with significant institutional investments in Bitcoin from companies like MicroStrategy and Tesla. He predicts that ETH ETFs will attract significant institutional interest, possibly spilling over into other altcoins and leading to a huge inflow of capital.
According to the experienced trader, the approval of ETH ETFs is probably just the beginning. He anticipates that “Wall Street will not stop ETH ETF Approval” and may soon start leveraging ETFs for other altcoins and even ETF baskets that include multiple cryptocurrencies. This development could trigger an unprecedented altseason, with huge gains in the altcoin market.
The “Altcoin Season Index”
Sajad, another crypto analyst known for his insight into trends, shared his insights on the Altcoin Season Index. According to him, the index, which measures whether the market is in an altcoin or Bitcoin season, has yet to reflect a true altcoin season.
“We were inside high season literally for about a day in January and a few hours on March 6,” Sajad noted. However, the recent approval of ETH ETFs and subsequent market dynamics suggest a broader season may be ahead for altcoins.
Virtual Bacon insights
As shared previously, Virtual Bacon highlighted the broader market implications of the ETH ETF approval. He drew attention to the fact that Ethereum has more than 20,000 altcoins in its ecosystem.
The approval of ETH ETFs could lead to broader acceptance and regulatory clarity for these altcoins, possibly resulting in huge price increases and an intensification of network activity.
Summing up,
The Ethereum ecosystem saw an increase in trading volumes around the clock, up more than 16%. This increase represents an increase in investor interest and activity following the ETF’s approval. However, while tokens in the Ethereum ecosystem have enjoyed modest to huge price increases, the market has yet to see the explosive gains typical of a “real” altcoin season.
The Blockchain Center’s Altcoin Season Index suggests that for a true altcoin season, the top 50 cryptocurrencies must outperform Bitcoin over a 90-day period. According to Sajad’s index, the market has not yet reached this threshold, suggesting room for growth.
The approval of Ethereum ETFs marked a milestone in providing regulatory clarity and potentially paving the way for a major altcoin season.