Bitcoin News Today: Regulators Hold Keys to Altcoin’s Next Big Move

Analysts have increasingly highlighted the potential for a shift in the cryptocurrency market, with altcoins gaining momentum amid a waning dominance of Bitcoin. This trend has led to speculation that a broader rally among alternative cryptocurrencies might depend on the approval of new spot ETFs for altcoins such as XRP and Avalanche (AVAX). The Federal Reserve’s upcoming interest rate decision in September is also seen as a key factor influencing market direction. Technical indicators and macroeconomic factors suggest a correction period may follow, particularly as retail investors appear to be reallocating capital to altcoins in anticipation of higher returns compared to Bitcoin. Ito Shimotsuma, a noted market analyst, emphasized that weak Bitcoin dominance charts are a bullish sign for altcoins, while also noting that the Fed’s potential rate cuts may prolong the current altcoin rally into early September. However, this optimism is tempered by the expectation of a market correction before a potential new upward phase in the fourth quarter.

Grayscale Investments, a major player in the crypto investment space, has taken a significant step toward expanding altcoin ETF offerings by filing an S-1 with the U.S. Securities and Exchange Commission (SEC) to convert its Avalanche Trust into a spot ETF. This proposed fund, set to trade on Nasdaq, would provide investors with direct exposure to AVAX, the native token of the Avalanche blockchain. Coinbase Custody is designated as the custodian for AVAX, while BNY Mellon is expected to serve as the fund’s administrator. The initiative aligns with Grayscale’s ongoing strategy to offer regulated investment vehicles for alternative cryptocurrencies, including recent filings for XRP and Dogecoin ETFs. The company’s S-1 filing is part of a broader regulatory process that follows an initial 19b-4 filing with Nasdaq in March 2025. Despite the growing institutional interest in Avalanche—evidenced by partnerships with Visa and the launch of the Avalanche Visa Card—AVAX has experienced a significant price decline over the past year, trading at approximately $24.25 and down nearly 55% from its December 2024 high of $54.11.

The XRP ETF landscape is also witnessing significant developments as major firms, including Grayscale, Canary Capital, Franklin Templeton, and WisdomTree, have filed amended S-1 applications in response to feedback from the SEC. The timing of these amendments appears to coincide with the SEC’s decision to delay its approval decision until October. Bloomberg analyst James Seyffart has noted that the amendments likely reflect the regulator’s guidance, a common practice in the ETF approval process. The legal environment surrounding XRP has also evolved, with Judge Analisa Torres ruling that XRP is not a security. This legal clarity is viewed as a critical factor enabling the current wave of XRP ETF filings. Polymarket data indicates an 81% probability of approval by year-end, while industry experts project a high likelihood of regulatory clearance. If approved, XRP ETFs could begin trading within one to five days, mirroring the approval timeline of Bitcoin ETFs. However, a longer delay is also possible, with Ethereum ETFs having taken approximately two months from S-1 approval to trading commencement.

Doctor Profit, another prominent analyst in the crypto space, has expressed concerns over the current technical outlook for Bitcoin, noting signs of pressure on key charts such as the CME gap near $93,000 and reduced trading volume. He has also highlighted bearish divergences on both daily and weekly timeframes as further indicators of a potential correction. Doctor Profit attributes the recent altcoin rally to increased futures trading rather than strong institutional demand, with ETFs and large funds experiencing outflows. Given the retail positioning in Bitcoin at levels between $110,000 and $120,000, he warns of potential losses should the price retreat to the $90,000–$95,000 range. In his trading strategy, he has shifted to taking daily profits from Bitcoin and Ethereum since mid-August while building short positions in Bitcoin, anticipating a correction before both assets reach new highs in late 2025.

The potential approval of AVAX and XRP ETFs could mark a turning point for altcoin investment in traditional financial markets. These products aim to bridge the gap between institutional investors and the broader crypto ecosystem by offering regulated, liquid investment vehicles. The growing institutional interest in altcoins is further evidenced by Avalanche’s integration into Visa’s stablecoin settlement system and the launch of the Avalanche Visa Card. Despite the recent price volatility in AVAX, analysts remain cautiously optimistic, pointing to technical signs of a potential breakout above key resistance levels. If the SEC approves the proposed ETFs, they could serve as a catalyst for renewed investor confidence in altcoins beyond Bitcoin and Ethereum, potentially reshaping the investment landscape for digital assets in the United States.

Source:

[1] Bitcoin Dominance Weakens as Altcoins Rally Ahead of Expected September Correction (https://www.livebitcoinnews.com/bitcoin-dominance-weakens-as-altcoins-rally-ahead-of-expected-september-correction/)

[2] Grayscale Files S-1 For Spot Avalanche ETF With Ticker (https://cointelegraph.com/news/grayscale-files-spot-avalanche-etf-ticker-avax)

[3] Expert Reveals What Updated XRP ETF Filings Mean In (https://www.mitrade.com/insights/news/live-news/article-3-1067706-20250826)

[4] Grayscale Files for Avalanche ETF, Will AVAX Price Recover? (https://finance.yahoo.com/news/grayscale-files-avalanche-etf-avax-160203359.html)

[5] Grayscale Moves to Convert Avalanche Trust Into Spot ETF (https://www.coindesk.com/markets/2025/08/25/grayscale-files-s-1-with-sec-to-convert-avalanche-trust-into-spot-etf-on-nasdaq)