The SEC's approval of a new multi-crypto ETF failed to move prices, particularly within the altcoin segment.
Investors are favoring crypto equities and major blockchains as confidence in smaller tokens continues to decline.
The crypto market is shifting toward structured investments, sidelining speculative assets in favor of institutional-grade platforms.
The cryptocurrency market continues to show mixed signals, even after the U.S. Securities and Exchange Commission approved a new Grayscale ETF. The fund features Bitcoin, Ethereum, Solana, Cardano, and XRP. However, altcoins have remained sluggish, showing limited reaction following the news. While Bitcoin is maintaining strength near recent highs, the broader altcoin sector has failed to gain traction.
In contrast to the muted crypto performance, major traditional assets like the S&P 500, gold, and silver have hit new record highs. Altcoins, particularly mid- and small-cap tokens, have been left out of the broader financial rally. The divide has widened between Bitcoin and lesser-known digital assets, creating a fragmented market response.
Big Finance Pushes Control Over Crypto Sector
Institutional influence continues to reshape the crypto ecosystem. Large firms such as BlackRock are gaining ground, leading to tighter market dynamics. The industry now appears split into three areas: dominant Layer 1 blockchains and DeFi projects that attract capital, meme coins driven by speculation, and other altcoins with limited momentum. This changing structure is pushing investors toward clearer, more institutional-grade assets.
Instead of pouring funds into altcoins, investors are increasingly opting for crypto-related stocks. Companies like Robinhood and Coinbase have seen stronger performance and are viewed as safer vehicles. This redirection of capital has added further pressure on altcoins, which have struggled to respond to broader market developments.
Strategic Focus Shifts to Layer 1 Projects and DeFi
According to market expert Ran Neuner, investors should consider a more concentrated strategy during this uncertain phase. He suggests allocating 80 to 90% of crypto holdings to Layer 1 networks like Ethereum, Solana, and Bitcoin. These blockchains are expected to benefit most from increased on-chain asset adoption.
The remaining 10 to 20% of portfolios could be directed toward decentralized finance platforms, especially those facilitating lending and borrowing. With tokenized stocks and assets gaining traction, these platforms may play a larger role in crypto infrastructure. This trend could support long-term growth if adoption continues.
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