And the market’s hype for an “altcoin summer” is building up quickly. Regulatory optimism across the pond in the United States is causing a tidal wave of applications for altcoin exchange-traded funds (ETFs). The U.S. Securities and Exchange Commission (SEC) has received at least 31 altcoin ETF applications in the first half of 2025. ETF and crypto analysts are hopeful the SEC approves at least 10 of these applications. This optimism is due, in large part, to a shift in regulatory paradigm. Under SEC Chairman Atkins, the mission is to undo whatever actions his predecessor — Gary Gensler — got done. Gensler was criticized by the crypto industry for allegedly overregulating and killing its potential.

Though the market is starting to price-in future possible approvals, the early signs are showing a more nuanced picture. Two separate, unofficial “altcoin season indexes,” published on Blockchain Center and CoinMarketCap, have the indicator squarely in “Bitcoin season.” The SEC has previously greenlit futures and spot ETFs for Bitcoin (BTC) and Ether (ETH). Every previous attempt, including Coinbase’s recent paperwork, has fizzled out. This leads to larger questions about the sustainability and market need for these new investment vehicles.

Regulatory Tailwinds and ETF Filings

Atkins' SEC has implemented new, crypto-friendly rules. This has been the case with, e.g., Rule 3b-16, which enlarged the definition of the term “exchange” to capture DeFi protocols. This regulatory about face opened the flood gates for dozens of altcoin ETF applications.

The SEC's recent announcement that it would be "withdrawing certain notices of proposed rulemaking" made under Gensler further signals a more accommodating stance towards the crypto industry. WisdomTree and Franklin Templeton are two other firms currently developing XRP (XRP) ETFs. This is a significant development reflecting a growing interest in providing investors with exposure to an increasingly diverse array of digital assets.

Yet, notwithstanding this optimism, the SEC has a history of expressing concerns over the structure and operation of crypto funds. These reservations throw another bag of unpredictability into the approval process.

Market Dynamics and Altcoin Dominance

So even though the hope of altcoin ETF is driving a lot of excitement and speculation, market data tell a different story. Altcoin dominance is slumping this year, indicating that investors are setting their sights solely on Bitcoin for now.

Nearly a year after such approval, ETH’s price has not enjoyed the same meteoric price action as its counterpart, Bitcoin. All this leads to one big question – what’s next for altcoin ETFs? Will they receive the same order of magnitude investor demand and propel prices to similar fold gains?

Demand for altcoin ETFs might be just as low as for ETH ETFs. The market is significantly underestimating the challenges in replicating Bitcoin’s success with less established cryptocurrencies.

Analyst Perspectives and Future Outlook

Even with the mixed signals, it’s enough for some analysts to stay bullish about altcoins’ future. Despite the correction, crypto analyst Michaël van de Poppe stated in a June 1 blog post that the altcoin market is just getting started.

"The biggest bull market ever on crypto is about to happen, as the expansion after such a long bear market is going to be bigger than before." - Michaël van de Poppe

Other analysts urging more tempered optimism point out that Bitcoin’s dominance will not be threatened.

"Nothing will compare to bitcoin. We have a little saying on the team: ‘The further away you get from btc, the less assets there will be’" - Eric Balchunas

The Solana ETF’s chances of approval have reached widespread attention, with some analysts predicting an 84% chance of success.

"[A Litecoin ETF is] def among the most likely to be out first, but Osprey forcing their Solana 40 act filing effective may have sparked the SEC to act faster on the Solana ones" - Eric Balchunas