Will the arrival of Ethereum ETFs shift the spotlight from Bitcoin to Altcoins during Altseason?

Altcoin Market Sees Explosive Surge, Bitcoin ETFs Drive Growth

The altcoin market is currently experiencing a red-hot rally, fueled by a surge in value and a decline in Bitcoin dominance. In just two weeks, the total market cap of altcoins has skyrocketed by 15%, reaching an impressive $1.156 trillion.

So, what is driving this explosive surge? Let’s take a closer look.

One major factor behind this growth is the influx of over $2 billion into Bitcoin ETFs in the past two weeks. This is a historic milestone for the cryptocurrency market in the United States. Last week alone, a record-breaking $1 billion was received, with $305 million on May 21st alone. Bitcoin ETFs, which track the price of Bitcoin and are traded on traditional exchanges, offer investors exposure to Bitcoin without the need to hold the cryptocurrency directly.

Data from Farside reveals that U.S. spot Bitcoin ETFs saw net inflows of approximately $252 million on May 24th, marking the 10th consecutive trading day of such inflows. Leading the pack was BlackRock’s IBIT with an inflow of $182 million, followed by Fidelity’s FBTC with $44 million, Bitwise’s BITB with $6.4 million, and the ARK 21Shares Bitcoin ETF with an inflow of $4 million.

Crypto influencer Lark Davis has made some bold predictions about the future prices of Bitcoin and Ethereum. He foresees Bitcoin potentially reaching $150,000 and Ethereum hitting $15,000. Davis attributes this surge to the growing influence of Bitcoin ETFs, which are already attracting hundreds of millions of dollars in daily inflows. He believes that a similar trend will occur with Ethereum ETFs, which are set to debut soon.

According to a report by Kaiko analysts, Grayscale’s upcoming spot Ether (ETH) ETF could be a game-changer, similar to BTC ETFs. If it follows the path of the Grayscale Bitcoin Trust (GBTC) during its transition to an ETF, it could see daily outflows of around $110 million. Davis predicts that as the bull market reaches its peak, various investors, including institutions, wealth managers, pension funds, and even countries, will pour billions into these ETFs daily, driving prices up. He argues that the current market sentiment does not fully reflect the growth potential of Bitcoin and Ethereum, and ETF-driven investments will push their prices higher.

First-quarter reports have also revealed an interesting trend. Over 20% of exposure to U.S. spot Bitcoin ETFs came from large investors and institutions with assets exceeding $100 million. This includes major hedge funds, banks, and even the state of Wisconsin’s pension fund. This indicates a growing institutional interest in Bitcoin ETFs and suggests a similar pattern for ETH ETFs.

While ETH ETFs have yet to launch, speculation is that they may reverse BTC ETF inflows and make altcoin history. The altcoin market is certainly one to watch, and it presents exciting investment opportunities for those willing to dive deeper into it.