The conversion of major altcoin funds to ETFs is seen as a turning point that helps the cryptocurrency market grow, especially as institutional investors continue to accumulate without pause.
MAIN CONTENT
The altcoin market is under downward pressure along with Bitcoin, but institutional cash flow continues to accumulate strongly.
The U.S. Securities and Exchange Commission (SEC) has approved the conversion of the Grayscale Digital Large Cap fund to an ETF, paving the way for other altcoin ETFs.
The approval of leveraged ETFs stimulates expectations for the altcoin market to grow again in the medium term.
Can the U.S. Securities and Exchange Commission (SEC) approve spot altcoin ETFs that change the market?
The U.S. SEC has just allowed the conversion of the Grayscale Digital Large Cap (GDLC) fund to a spot ETF, marking an important step in bringing altcoins into the mainstream. This decision reinforces the positive trend of the cryptocurrency market in the medium term due to the clear legal landscape and increased institutional cash flow.
The GDLC fund is managing approximately $774 million in assets, focusing on Bitcoin, Ethereum, XRP, Solana, and Cardano. The conversion to an ETF helps attract capital from larger institutional investors, enhancing liquidity and market acceptance. According to the SEC report on July 1, 2025, this decision contributes to increasing cryptocurrency trading volumes in the coming months.
GDLC's spot ETF is a 'significant turning point for the global altcoin market,' according to the President of the Grayscale Fund, revealed in a press conference in July 2025.
Michael Sonnenshein, CEO of Grayscale Investment, July 2025
How does the accumulation of institutional investors impact the cryptocurrency market?
On-chain data shows that institutional investors continue to accumulate Bitcoin and altcoins despite the short-term downtrend, evidenced by the inflow into spot Bitcoin ETFs like BlackRock's IBIT fund with a net of $102 million on June 30. This marks a continuous 15-day capital inflow, reflecting strong confidence in the cryptocurrency market from major institutions.
This move shows that 'whales' and large funds believe in the market's recovery, preparing for a new bull market phase based on transparent legal foundations and an increasingly rich array of ETF investment products.
"Continuous institutional cash accumulation creates a solid foundation for the long-term sustainability of the cryptocurrency market," analysis from Eric Balchunas, Bloomberg's leading ETF analyst, dated July 1, 2025.
Eric Balchunas, ETF Analyst, Bloomberg, July 1, 2025
What are the medium-term expectations for the altcoin market after ETF approval?
After the SEC approved the conversion of GDLC to a spot ETF, expectations for an explosive altseason have clearly increased. Many experts predict that the SEC will continue to grant licenses for more spot cryptocurrency ETFs, facilitating new capital flows into top altcoins.
Eric Balchunas comments that it is highly likely that the approval standards will be flexible, allowing a majority of the Top 50 coins to qualify for ETFs. This expands the opportunity for spot investments, making it easier for investors to access potential altcoins and profit through the Dollar Cost Averaging (DCA) strategy in 2025.
Grayscale GDLC Spot Bitcoin ETF (IBIT) Product Features Assets Under Management (AUM) $774 million Not specifically disclosed Asset Types Bitcoin, Ethereum, XRP, Solana, Cardano Bitcoin Net Cash Flow (latest period) ETF conversion approval, expected cash flow increase of $102 million/day, continuous 15-day streak Market Impact Triggers positive trends for altcoins Ensures strong purchasing power from institutional investors
Frequently Asked Questions
What does SEC approval of altcoin ETFs mean for investors? It helps create a mechanism to attract institutional cash flow, enhancing liquidity and safety in cryptocurrency investments, leading to more sustainable market development. Why is institutional money still increasing despite the downtrend in the market? Institutional investors view the current decline as a long-term accumulation opportunity based on fundamental analysis and favorable legal expectations. Is the Dollar Cost Averaging (DCA) strategy suitable for altcoins today? DCA helps reduce price volatility risk and is an effective approach when the altcoin market is highly volatile, but long-term potential remains positive. What cryptocurrencies does the GDLC fund hold? GDLC holds top cryptocurrencies like Bitcoin, Ethereum, XRP, Solana, and Cardano, focusing on the large-cap group. Will ETF approval help altcoin prices rise immediately? Approval creates growth expectations, but prices depend on many other factors; however, it can stimulate upward trends in the medium term.
Source: https://tintucbitcoin.com/altcoin-summer-tro-lai-thi-truong-phuc-hoi/
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