Altcoin Season Depends on Approval of Crypto ETFs, Says Bitfinex Executive

The crypto market rally has stalled, and altcoins are facing consistent selling pressure. Analysts believe a major rally won't happen until spot crypto ETFs are approved. Despite the SEC's delay in approving several crypto ETF applications, issuers continue to bring new products to the market. The proposed American-Made Crypto ETF will exclusively include cryptocurrencies developed in the US.

The crypto market rally has stalled, with altcoins facing consistent selling pressure. Analysts believe a major rally won't happen until spot crypto ETFs are approved. Despite the U.S. Securities and Exchange Commission (SEC) delaying decisions on several crypto ETF applications, issuers continue to introduce new products. The proposed American-Made Crypto ETF, for instance, will exclusively include cryptocurrencies developed in the United States.

Analysts from Bitfinex have noted that the crypto market remains subdued, with no major catalysts in sight. They predict a broader market rally later this year, contingent on Bitcoin product inflows recovering and new investment vehicles for altcoins becoming available. The analysts emphasize that crypto ETFs, particularly spot crypto ETFs, are expected to generate sustained, price-agnostic demand, creating favorable conditions for a broader re-rating across the digital asset complex [1].

The SEC has delayed decisions on multiple cryptocurrency ETF applications, including those for XRP, Solana, and Litecoin. These delays have not deterred issuers from introducing new products. For example, top crypto investment firm Canary Capital recently submitted a Form S-1 to the SEC seeking approval for an "American-Made Crypto ETF" [3].

The proposed American-Made Crypto ETF would exclusively include cryptocurrencies originally developed in the United States. This focus on U.S.-developed cryptocurrencies aligns with the growing trend of regulatory clarity and investor confidence in the U.S. market.

Meanwhile, the altcoin market remains volatile. Despite Bitcoin's dominance dropping by 6% over the past month, the altcoin season remains stalled with no major catalysts in sight. Popular analyst Michael Van de Poppe has warned of harsh corrections in Ethereum and altcoins in general, advising investors to position themselves to buy ETH price dips in the range of $3,500-$3,750 [1].

In a separate development, the native coin of the Cronos chain, CRO, surged 42% in 24 hours after Crypto.com struck a multi-billion-dollar deal with Trump Media. This deal has driven more CRO adoption and pushed the coin's price above $0.22. Analysts predict that if demand holds, CRO could target $0.33 next, but a drop in participation could send the token back [2].

In conclusion, while the crypto market faces delays in ETF approvals, the industry continues to innovate and introduce new products. The proposed American-Made Crypto ETF is a notable development, focusing on U.S.-developed cryptocurrencies. Despite market volatility, the long-term outlook for crypto remains promising, contingent on regulatory clarity and investor confidence.

References:
[1] https://finance.yahoo.com/news/crypto-etfs-must-strong-altcoin-125841019.html
[2] https://www.ccn.com/analysis/crypto/cronos-cro-coin-price-spikes-crypto-com-6-4b-deal-trump-media/
[3] https://finance.yahoo.com/news/sec-just-announced-delays-xrp-183700230.html