They argue that sustained demand for altcoins hinges on broader investment vehicles and stable inflows. However, Coinbase’s David Duong is still optimistic, and predicted an altcoin surge by September. Meanwhile, Grayscale filed to convert its Avalanche Trust into a spot AVAX ETF. Altseason Delayed? Altcoins may have to wait longer before experiencing a rally. Analysts from Bitfinex believe that a true “altseason” is unlikely until the approval of crypto exchange-traded funds (ETFs) that provide investors with exposure beyond Bitcoin and Ethereum. In their latest market report , the analysts explained that the current environment does not resemble the type of “rising tide lifts all boats” scenario that historically fueled outsized gains across altcoins. Instead, they anticipate that only once inflows into Bitcoin ETFs stabilize and new investment vehicles for altcoins are introduced will the conditions emerge for a sustained re-rating across the crypto market. The analysts believe that such products will bring sustained, price-agnostic demand, which will create structural support for altcoin valuations. Currently, however, they described the crypto market as following a “muted trajectory” with positive yet cautious capital inflows. This reflects a softer appetite for risk compared to previous cycles when aggressive buying behavior drove assets to new all-time highs. The narrative means that there is a shift in investor behavior, with people adopting a much more measured approach thanks to heightened volatility earlier this year. On the other hand, not everyone agrees with this cautious outlook. David Duong, Coinbase Institutional’s global head of research, recently argued that conditions are aligning for a potential full-scale altcoin season by September. His perspective is very different from Bitfinex’s, as he suggests that the market may already be positioning for rotation into higher-risk assets as Bitcoin dominance fell roughly 4.5% in the past month. BTC dominance over the past month (Source: TradingView ) Amid this debate, attention turned to which crypto ETFs could debut next. Spot Bitcoin ETFs have been live for more than 19 months, while spot Ethereum ETFs have been trading for over a year. The US Securities and Exchange Commission (SEC) recently postponed decisions on multiple applications, including Truth Social’s proposed Bitcoin-Ethereum ETF, Solana products from 21Shares and Bitwise, and a Core XRP Trust from 21Shares. Bloomberg ETF analyst Eric Balchunas suggested earlier this summer that the market could even see the eventual launch of an ETF focused entirely on meme coins, and predicted that such a product could realistically arrive as early as 2026. For now, altcoin investors may stay in a holding pattern until clearer signs of ETF-driven inflows appear. Grayscale Files for Avalanche ETF Issuers are already working hard to make sure altcoin ETF applications land on the SEC’s desk. Grayscale Investments recently took another step in expanding its lineup of crypto investment products by filing an S-1 registration with the SEC to convert its existing Avalanche Trust into a spot Avalanche (AVAX) ETF. The proposed Grayscale AVAX Trust ETF will provide investors with direct exposure to Avalanche through traditional brokerage accounts. Coinbase Custody will serve as the custodian of the AVAX tokens, while BNY Mellon is expected to act as administrator and transfer agent for the fund. Grayscale’s S-1 registration with the SEC The filing was made after Nasdaq’s submission to the SEC in March of 2025 to list AVAX shares, which means that there is clearly a coordinated effort to bring Avalanche into the mainstream ETF market. In its registration statement, Grayscale mentioned that upon approval, the trust will be renamed the Grayscale AVAX Trust ETF. This filing comes about a year after the firm introduced the Avalanche Trust in August of 2024 and builds on its earlier attempts to launch ETFs tied to XRP and Dogecoin. Grayscale is not alone in pursuing Avalanche-related ETFs, as VanEck also filed in March 2025 for its own spot Avalanche ETF. Avalanche itself has grown into a major player in the blockchain ecosystem since launching in September of 2020. It was developed by Ava Labs under the leadership of Cornell professor Emin Gün Sirer, and the open-source network supports decentralized applications and smart contracts. It is currently ranked as the 18th largest cryptocurrency with a market cap of $9.7 billion. Despite its technological progress and growing adoption, the AVAX token has endured a difficult year. After peaking at $54.20 in December 2024, the asset fell 55% to around $23.19, which is a 30+% decline year-to-date. AVAX price action over the past year (Source: CoinMarketCap ) Still, there are signs of renewed momentum for the Avalanche ecosystem. Last week, Anthony Scaramucci’s SkyBridge Capital announced a $300 million tokenization project on Avalanche, while the network was also selected as one of the blockchains to support Wyoming’s Frontier Stable Token alongside Ethereum and Solana. This, combined with Grayscale’s ETF push, suggest that despite recent price weakness, Avalanche is still working hard to solidify its role as a major blockchain platform and investment asset.
