The post U.S. SEC Approves First Solana, XRP, and Cardano ETF: Is the Altcoin Summer Next? appeared first on Coinpedia Fintech News
The altcoin market has followed Bitcoin (BTC) in midterm weakness, amid historical demand from institutional investors. The crypto market cap declined by around 4 percent in the past 24 hours to hover about $3.366 trillion on Tuesday, July 1, during the mid-North American trading session.
Amid the midterm crypto bearish outlook, on-chain data analysis shows institutional investors have continued to accumulate relentlessly. For instance, the U.S. Spot Bitcoin ETFs, led by BlackRock’s IBIT, recorded a net cash inflow of about $102 million on Monday, thus registering 15 consecutive days of cash inflows.
Will U.S. SEC’s Approval of Spot Altcoin ETF Trigger Market Reversal?
The U.S. Securities and Exchange Commission (SEC) has remained on the side of pro-crypto regulations since the 2nd inauguration of President Donald Trump. On Tuesday, the SEC granted approval to the conversion of Grayscale’s Digital Large Cap (GDLC) Fund into an ETF.
The Grayscale Digital Large Cap Fund, which has about $774 million in Assets Under Management (AUM), holds several digital assets led by Bitcoin, Ethereum, XRP, Solana, and Cardano.
The approval of the GDLC‘s conversion to ETF is a major milestone for the entire altcoin market, which has been expecting more spot ETF approval in the coming months. As a result, the approval will play a crucial role in net crypto traded volume during the next few months.
The expected demand growth in the spot market will likely trigger a bullish reversal in the near term.
Midterm Expectations
Following the approval of GDLC conversion to an ETF product, the odds of an altseason in the near term have significantly surged. Furthermore, the U.S. SEC will imminently approve more crypto spot ETFs in the near future.
With most altcoins attempting to mirror Bitcoin’s compound growth, incorporating Dollar Cost Averaging (DCA) might prove profitable by the end of this year.