News of the U.S. SEC’s approval of Ethereum ETFs set off ripples in the crypto community. At the same time, some famous crypto traders and analysts, including Ash Crypto, Sajad, and Virtual Bacon, shared their opinions regarding the implications of such a move for the wider altcoin market.
Why ETH Spot ETF Approval Is Bigger Than Bitcoin ETF?
Ash Crypto highlighted several critical points regarding the impact of ETH ETFs, the biggest and most important of which is the potential shift in the regulatory landscape. Popular crypto trader and analyst Ash Crypto noted, “The SEC has said that every altcoin is a security,” but with ETH ETFs approved, other altcoins that operate similarly to Ethereum might no longer be classified as securities. This change could alleviate legal uncertainties surrounding many altcoins that held Initial Coin Offerings (ICOs).
He also pointed out the BTC ETF cycle, with significant institutional investments in Bitcoin from companies like MicroStrategy and Tesla. He predicts that ETH ETFs will attract substantial institutional interest, possibly spilling over into other altcoins and leading to a huge capital inflow.
According to the experienced trader, the approval of ETH ETFs is likely just the beginning. He anticipates that “Wall Street will not stop at ETH ETF approval” and might soon start to exploit ETFs for other altcoins and even basket ETFs that include multiple cryptocurrencies. This development could trigger an unprecedented altseason, with massive gains across the altcoin market.
The “Altcoin Season Index”
Sajad, another crypto analyst known for his insight into trends, shared his insights regarding the Altcoin Season Index. According to him, the index—which gauges whether the market is in an altcoin or Bitcoin season—is yet to reflect a true altcoin season.
“We were in altseason for literally a day or so in Jan and a few hours on 6th March,” Sajad noted. However, the recent approval of ETH ETFs and the following market dynamics hint at a broader season that might be in the offing for altcoins.
Virtual Bacon’s Insights
As shared earlier, Virtual Bacon emphasized the broader market implications of the ETH ETF approval. He drew attention to the fact that Ethereum has more than 20,000 altcoins within its ecosystem.
The approval of ETH ETFs could lead to broader acceptance and regulatory clarity for these altcoins, possibly driving huge price gains and heightened network activity.
Summing up,
The Ethereum ecosystem saw a surge in 24-hour trading volumes, rising over 16%. This increase represents increased investor interest and activity following the ETF approval. However, while Ethereum ecosystem tokens have enjoyed modest to huge price gains, the market is yet to see the explosive gains typical of a ‘true’ altcoin season.
The Altcoin Season Index from Blockchain Center suggests that for a true altcoin season, the top 50 cryptocurrencies must outperform Bitcoin over 90 days. According to Sajad’s index, the market has not yet reached this threshold, indicating room for growth.
The approval of Ethereum ETFs has marked a milestone in providing regulatory clarity and potentially paving the way for a major altcoin season.
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