Ethereum ETFs Could Spark Next Major Altcoin Season
Some famous cryptocurrency traders and analysts, including Ash Crypto, Sajad and Virtual Bacon, shared their opinions on the implications of such a move for the broader altcoin market.
The crypto community was abuzz with the news of the US SEC’s approval of Ethereum ETFs.
Why ETH Spot ETF Approval is Higher than Bitcoin ETF?
Ash Crypto highlighted several critical points regarding the impact of ETH ETFs, the largest and most important of which is the potential change in the regulatory landscape. Popular cryptocurrency trader and analyst Ash Crypto noted that “The SEC has said that every altcoin is a security,” but with the approval of ETH ETFs, other altcoins that function similarly to Ethereum may no longer be classified as securities.
This change could alleviate the legal uncertainty surrounding many altcoins that have had initial coin offerings (ICOs). He also noted the BTC ETF cycle, with significant institutional investment in bitcoin from companies like MicroStrategy and Tesla. He predicts that ETH ETFs will attract significant institutional interest, potentially spreading to other altcoins and generating a huge influx of capital.
According to the veteran trader, the approval of ETH ETFs is likely just the beginning. He expects that “Wall Street will not stop at the approval of ETH ETFs” and could soon begin to create ETFs for other altcoins and even ETF baskets that include multiple cryptocurrencies. This development could trigger an unprecedented alt-season with massive gains across the altcoin market.
The “Altcoin Seasonal Index”
Sajad, another crypto analyst known for his knowledge of trends, shared his thoughts on the Altcoin Seasonal Index. According to him, the index, which measures whether the market is in an altcoin or bitcoin season, does not yet reflect a true altcoin season.
“We were literally in peak season for about a day in January and a few hours on March 6,” Sajad said. However, the recent approval of ETH ETFs and subsequent market dynamics suggest that a broader season may be in the offing for altcoins.
Virtual Bacon Insights
Virtual Bacon highlighted the broader market implications of the ETH ETF approval. He noted that Ethereum has over 20,000 altcoins within its ecosystem. The approval of ETH ETFs could lead to greater acceptance and regulatory clarity for these altcoins, potentially leading to huge price gains and increased network activity.
Overall, the Ethereum ecosystem saw a surge in 24-hour trading volumes, which increased by over 16%. This increase represents increased investor interest and activity following the approval of the ETF.
However, while tokens in the Ethereum ecosystem have seen modest to huge price gains, the market has yet to see the explosive gains typical of a “true” altcoin season. The Blockchain Center Altcoin Season Index suggests that for a true altcoin season, the top 50 cryptocurrencies must outperform bitcoin for 90 days.
According to the Sajad Index, the market has yet to reach this threshold, suggesting room for growth. The approval of Ethereum ETFs is a milestone in providing regulatory clarity and potentially paving the way for a major altcoin season.
By Leonardo Perez