The crypto market continues to wait for the arrival of the altcoin season, a period marked by major rallies in altcoins. However, analysts from Bitfinex believe that this event is unlikely to happen in the near future. They argue that an altcoin rally may only materialize after the approval of new crypto ETF products that provide investors with greater exposure to high-risk assets.

In its Bitfinex Alpha report released on Monday (August 25, 2025), the analysis team noted that the decline in Bitcoin’s dominance over the past month has not been strong enough to trigger an altcoin surge.

Typically, such a condition is considered one of the early indicators of an impending altcoin season. TradingView data shows that Bitcoin’s dominance has dropped by around 6% over the last 30 days and currently sits at 58.12%.

The Role of ETFs in Driving the Market

Bitfinex further noted that while capital inflows into the crypto market remain positive, investor sentiment appears more cautious compared to previous rally phases. New ETF products focused on altcoins are seen as essential in creating sustainable demand that is less influenced by short-term price movements.

“These types of products have the potential to build long-term demand and pave the way for broader revaluation across the digital asset ecosystem,” the Bitfinex analyst team explained.

As speculation rises, many industry players are closely watching which crypto ETF will secure the next regulatory approval. Currently, spot Bitcoin ETFs have been trading for over 19 months since their debut in January 2024, while spot Ether ETFs have been active for 13 months since their launch in July 2024.

However, the U.S. Securities and Exchange Commission (SEC) has yet to grant new approvals. Several applications have even been delayed, including Truth Social’s Bitcoin-Ethereum ETF, Solana products from 21Shares and Bitwise, and the Core XRP Trust from 21Shares.

Meanwhile, Bloomberg ETF analyst Eric Balchunas has hinted that ETFs actively trading memecoins may likely emerge in the future.

“First, we’ll see a wave of actively managed crypto ETFs, then likely a dedicated memecoin fund by 2026,” he stated.

For now, according to data from Blockchain Center, the altseason index stands at 55 out of 100, indicating that the altcoin market remains in a neutral phase.