The Potential of Altcoins in the Wake of Bitcoin ETFs: Crypto Market Outlook for 2024

The year 2024 kicked off on a positive note with the groundbreaking approval of Bitcoin spot ETFs by the U.S. Securities and Exchange Commission (SEC). Despite Bitcoin’s stable pricing between $45K and $47K, the altcoin market experienced a surge, particularly Ethereum Classic (ETC), which skyrocketed by 48%, paving the way for other major altcoins such as Ethereum (ETH), Cardano (ADA), and Avalanche (AVAX) with double-digit gains.
The recent surge in altcoin prices appears to be driven by increasing expectations within the crypto community regarding the SEC’s potential approval of spot-based ETFs for major alternative cryptocurrencies. Crypto analyst Lark Davis, also known as “Crypto Lark,” speculates that Ethereum spot ETFs could receive approval around May, which would be a significant milestone for the second-largest cryptocurrency. Bloomberg analyst Eric Balchunas has even predicted a 70% chance of an Ethereum ETF in May.
Adding to this, A16Z general counsel Miles Jennings suggests that the SEC’s approval of Ethereum futures products indicates a favorable stance on Ethereum not being classified as a security.
Additionally, Crypto Lark has also mentioned the possibility of an XRP ETF in the future, considering the landmark ruling in the Ripple SEC lawsuit, which determined that XRP is not a security. The crypto community eagerly awaits the next major ETF approval after Bitcoin, with Steve McClurg, co-founder and chief investment officer of Valkyrie Funds, hinting at the potential for Ethereum or XRP ETFs.
But there’s more to look forward to in 2024. The Ethereum Dencun upgrade and the Bitcoin halving are among the significant events on the horizon. Analysts predict an unprecedented altcoin boom in 2024, with Lark Davis envisioning it as “the biggest altcoin party ever seen.” This optimistic outlook is partly based on historical precedent, where the approval of BTC futures funds by the SEC led to a remarkable rally in altcoins, with gains of over 500%.
If this historical trend repeats itself, Ethereum, XRP, and other altcoins could experience substantial growth in 2024, potentially surpassing Bitcoin in terms of market dominance. Overall, the crypto community is poised for a year filled with anticipation, driven by regulatory advancements and key events that will shape the trajectory of various cryptocurrencies.