Quick Summary:
- Bitfinex analysts say altcoins won’t see a broad rally until regulators approve ETFs that provide structured exposure to alternative tokens.
- Current inflows remain steady but cautious, with investors showing less risk appetite compared to previous bull cycles.
- Coinbase’s David Duong offers a different view, predicting a potential full-scale altcoin season as early as September.
Altcoins may not see a broad, outsized rally until regulators approve new exchange-traded funds (ETFs) that provide exposure further down the crypto risk curve, analysts at Bitfinex said in a Monday market report.
The comments come as traders continue to watch for signs of “altseason” following a 6% dip in Bitcoin dominance over the past month. Despite the decline, analysts believe broader participation in alternative tokens will likely remain muted until structured investment products for altcoins are introduced.
ETFs Seen as Key to Sustained Demand
Bitfinex analysts said that while interest in altcoins has grown, the absence of regulated ETFs or similar vehicles remains a barrier to deeper institutional inflows. “These products are likely to generate sustained, price-agnostic demand, creating the conditions for a broader re-rating across the digital asset complex,” the report noted.
By contrast, current activity reflects a “softer appetite for risk” compared to earlier bull cycles. Analysts pointed to steady but cautious inflows, suggesting that investors remain more conservative than in previous runs to all-time highs.
Ether rises as Bitcoin consolidates.
Bitfinex Alpha suggests that the outlook for both assets look healthy.
ETH underpinned by treasury demand, and BTC supported by M2 monetary expansion.
📊 Flows, ETFs & treasury demand are determining direction:https://t.co/4CRm0y1dj2 pic.twitter.com/aR4EZEKGSR
— Bitfinex (@bitfinex) August 25, 2025
Diverging Views on Altseason Timeline
While Bitfinex forecasts a delayed altcoin rally tied to ETF approval, others see a faster turnaround. Coinbase Institutional’s global head of research, David Duong, recently argued that market signals point to an approaching altcoin season as early as September.
According to Duong, shifting conditions, including Bitcoin’s slowing momentu,m could accelerate rotation into altcoins even before new investment products are launched.
The diverging outlooks underscore uncertainty over the timing of a true altseason. For now, analysts agree that capital is still flowing into the market. Still, the pace and allocation remain cautious, leaving altcoins waiting for either regulatory catalysts or shifting investor sentiment to unlock their next major move.
This report aligns with recent findings that highlight a growing divergence between Bitcoin and major altcoins. While Bitcoin has entered a period of consolidation following its historic rally, several leading altcoins have posted double-digit gains, signaling a shift in market momentum and investor appetite.
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