Spot Ethereum ETF Trading Starts Altcoin Season

Since the launch of the Spot Bitcoin ETF early this year, crypto ETFs have been the most talked about subjects in 2024.In fact, they form one of the cases that triggered the bull market, driving Bitcoin to $73,000.

Related: ETH Price Surprisingly Drops After SEC Approves Spot Ethereum ETFs

Now all eyes are on the spot Ethereum ETF which kicked off yesterday, and could set the ball rolling for the next altcoin season. If this happens as per the industry’s anticipation, traders and degens will reap big profits, however, Bitcoin’s close proximity to its all-time high could pose a challenge for the renewed bullish momentum across the altcoin verse.

However, everyone’s optimist that this event marks the start of the altcoin season whose trigger largely depended on the launch of an exchange traded fund for Ethereum.

Make this clear, give it more humor and add some satire or sarcasm or deadpan: It is almost ironic that as Ethereum begins its ETF journey, Bitcoin has also been on the early stages of its DEFI initiation as developers rush to make it more programmable, scalable and appealing to degens who for the longest time have been degenerating on Ethereum products.

As Ethereum enjoys its newfound moment in the ETF spotlight, Bitcoin is busy attempting its DEFI makeover after enjoying the ETF spotlight for months now. It is evident that Developers have feverishly worked to make Bitcoin more programmable, scalable, and attractive to degens — so that it can also still a piece of Ethereum’s spotlight as the largest smart contracts ecosystem.

Spot ETF Could Trigger the Altcoin Season

Yesterday, the long-anticipated spot Ethereum ETF finally strutted onto the stage with a whopping $10 billion in assets where the Grayscale Ethereum Trust (ETHE) swooped in the lion's share of an impressive $9.2 billion.

Meanwhile, the total inflows are yet to increase from the first day’s amount, and the more they come, the higher the chances of Ethereum’s price breaking past $3,500. Meanwhile, the rise of Ethereum ETFs will potentially attract more inflows into the overall altcoin market.

If we exclude BTC, the combined market capitalization of altcoin assets is $1.05 trillion and its trending within a flag pattern. In a nutshell, a flag pattern resembles a rectangular in technical analysis and it indicates a trend consolidation before resumption of the previous trend. By calculating the pattern’s target using distance from the pole, it shows a potential breakout of 44% hangs on the side. This increase means that the market capitalization of the entire crypto market excluding Bitcoin could rise by $510 billion to $1.56 trillion in the near-term.

Altcoin Season Index

Meanwhile, the altcoin season index indicates the present market conditions are complementing the ongoing Bitcoin season. It is worth noting that altcoins will have to attract more demand and inflows for them to surpass Bitcoin dominance. 

Nonetheless, it is evident that the altcoin season is coming but the estimated arrival could be past the end of August.

More: What Happened to Ethereum this Week?

Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL FM is not a financial reference resource and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice of this sort, HODL FM strongly recommends contacting a qualified industry professional.