Regulators and Rate Cuts Fuel Altcoin Market's Big Comeback

The cryptocurrency market is experiencing a notable shift as XRP and Dogecoin (DOGE) exchange-traded funds (ETFs) draw significant investor interest, marking the potential onset of "Altcoin Season 2025." According to market data from Coingecko, the total crypto market cap has surged to around $4.03 trillion, with large-cap altcoins such as Ethereum (ETH) and XRP leading the charge. ETH's price has climbed over 8% in the last 24 hours, trading above $3,640 for the first time since early January 2025, while XRP has gained over 16% to trade at approximately $3.60, surpassing its previous all-time high set in January 2018.

The approval of XRP and DOGE ETFs by the U.S. Securities and Exchange Commission (SEC) represents a pivotal moment for the altcoin market. REX-Osprey has successfully navigated the SEC's 75-day review period for both ETFs, with the XRP ETF (ticker: XRPR) set to trade starting on Friday and the DOGE ETF (DOJE) launching on Thursday. The DOGE ETF is particularly notable as the first U.S. ETF focused on memecoins. Analysts point to the streamlined regulatory framework under the Investment Company Act of 1940 as a factor in the quicker approval of these ETFs compared to Bitcoin ETFs under the Securities Act of 1933. Nate Geraci of Nova Dius highlighted that futures-based XRP ETFs already have assets under management nearing $1 billion, suggesting strong initial demand for altcoin exposure.

The broader altcoin ETF pipeline is also gaining momentum. As of August 2025, over 90 crypto ETF applications are under review by the SEC, with the majority of decisions expected to be finalized by October 2025. James Seyffart, an ETF analyst at Bloomberg, noted that more than 90 applications are in the regulatory pipeline, covering a range of altcoins including Solana (SOL), Cardano (ADA), and Avalanche (AVAX). The SEC has extended comment periods for some applications, such as Bitwise’s Dogecoin and Grayscale’s Hedera ETFs, until November 12, 2025, indicating continued scrutiny of these products. The approval of additional altcoin ETFs is expected to expand institutional access to the cryptocurrency market and potentially drive further liquidity into altcoins.

The launch of XRP and DOGE ETFs is also being viewed through the lens of broader macroeconomic factors. The Federal Reserve’s anticipated 25 basis point rate cut on September 17, 2025, could influence market dynamics, as lower interest rates typically encourage capital to flow into riskier assets like cryptocurrencies. Historical trends suggest that coordinated global monetary easing could catalyze a significant altcoin rally, especially if central banks such as the Bank of England and Bank of Japan align with a dovish monetary policy. Bull Theory analysts have noted that a coordinated easing strategy could see Bitcoin break the $120,000 threshold and enhance Ethereum ETF inflows, which would further benefit altcoins.

Investor sentiment is also shifting in favor of altcoins. According to Coinglass, net crypto open interest (OI) has surged to a record high of $200 billion, with the ETH OI-weighted funding rate climbing to 0.0129%, signaling strong bullish sentiment. The recent passage of three crypto-related bills in the U.S. Congress—the GENIUS Act, the Clarity Act, and the Anti-CBDC Act—has added to the optimism, with analysts suggesting that clearer regulations will encourage institutional capital into the broader crypto market. The drop in Bitcoin’s dominance from around 66% to 61% since the beginning of the week also supports the idea that altcoins are attracting more capital from both retail and institutional investors.

Despite the growing enthusiasm for altcoin ETFs, challenges remain. The SEC’s cautious approach has led to delays in approvals for several applications, including those for Solana, Cardano, and Litecoin. The regulatory process for novel financial products like crypto ETFs is complex and often involves multiple rounds of feedback, as noted by Seyffart. However, the SEC’s July 31, 2025, launch of "Project Crypto" to modernize securities laws for on-chain innovation and the potential adoption of new generic listing standards by late September 2025 could streamline the approval process. These developments are expected to accelerate the launch of altcoin ETFs and provide greater clarity for investors.

The coming weeks will be critical for the altcoin market as the first wave of altcoin ETFs begins trading and global economic signals become clearer. If the anticipated Fed rate cut and potential global monetary easing materialize, it could mark the beginning of a significant altcoin rally. Meanwhile, the SEC’s decisions on pending ETF applications will shape the regulatory landscape for altcoins in the U.S., with potential implications for market liquidity and investor participation. As the crypto market continues to evolve, the success of XRP and DOGE ETFs could set a precedent for future altcoin products and solidify the transition into Altcoin Season 2025.