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- 1 Although Bitcoin was approved for spot ETFs, altcoins have seized the focus.
- 2 ETC and ENS gained 48.63% and 39.59%, respectively, as Bitcoin reached $47K and then fell.
- 3 With the projected ETH and XRP ETFs, the altcoin market is set to rise further in the following weeks.
While Bitcoin made headlines last week with the approval of the first spot crypto ETFs in the US, altcoins have since charged back to capture the spotlight. Ethereum (ETH) and other large-cap altcoins saw double-digit surges as investors bet on further regulatory progress in 2024.
Bitcoin ETFs Fuel Appetite for Altcoin Alternatives
When the SEC gave the nod to 11 Bitcoin spot ETFs last Tuesday, the news was heralded as a coming of age for crypto. But since then, Bitcoin has trended between $45K and $47K. Meanwhile, altcoins have staged a forceful rally.
Ethereum Classic (ETC) exploded 48% higher in the past 24 hours, charging up the market cap ranks. The decisive upside move coincided with rising expectations that the SEC will approve spot-based ETFs for top altcoins.
Ethereum (ETH) rallied 11%, with other leading contenders like Cardano (ADA) and Avalanche (AVAX) notching double-digit gains as well. The altcoin breakouts reveal traders anticipating similar products for crypto’s top alternatives.
All Eyes on Ethereum and XRP for Next ETF Listings
Industry observers consider Ethereum the most likely candidate for SEC-approved ETFs after Bitcoin. Not only is ETH firmly established as the second largest cryptocurrency, but fund managers like Grayscale have already applied for Ethereum ETFs using the same act the regulator relied on to greenlight the Bitcoin funds.
But XRP may also emerge as an ETF frontrunner this year due to its clear regulatory status. As the only major crypto deemed not secure by the SEC, Ripple’s XRP token is primed for an ETF. Its price surged 13% in the past week, buoyed by the prospects.
Analysts Forecast Parabolic Altcoin Boom in 2024
Against this backdrop, market analysts forecast an unprecedented altcoin boom in 2024. Crypto commentator Lark Davis proclaimed we could be on the cusp of “the biggest altcoin party ever seen.” He cited the previous ETF listing of gold, which saw demand for the physical asset skyrocket.
Bloomberg Intelligence analyst Mike McGlone also sees altcoins taking over, powered by ETFs bringing mainstream adoption. The ratings firm boldly called for Ethereum to flip gold’s market cap in 2024.
Others note that the last time Bitcoin led a major ETF breakthrough with the SEC approving BTC futures funds, the following year, altcoins rallied over 500%. If history repeats, 2024 could be the best year yet for Ethereum, XRP, and their altcoin peers.
Conclusion
While Bitcoin was the first crypto to secure regulatory ETF approval, the winds appear to be at the back of the altcoins. Ethereum and XRP are frontrunners to become the next cryptos with institutional ETF products as early as 2024.
With altcoins already breaking out before formal ETF decisions, the stage is set for an epochal rally. As analysts predict 2024 could ignite the parabolic altcoin boom retail traders have long anticipated, the most significant gains may still lie ahead.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
