Grayscale's multi-asset ETF approval opens new doors for altcoin ETFs like ADA, SOL, and XRP.
If demand remains weak, multiple large token unlocks (TRUMP, ZRO, APT) could increase selling pressure.
U.S. CPI and employment data in mid-July may shift cryptocurrency sentiment by altering interest rate expectations.
On July 2, the U.S. Securities and Exchange Commission (SEC) approved Grayscale's plan to convert its Digital Large Cap Fund (GDLC) into a spot ETF. This ETF holds Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL), and Cardano (ADA). While it is not an independent XRP or SOL ETF, this approval allows U.S. investors to invest in these tokens through a regulated fund.
This is the SEC's first approval of a spot ETF containing multiple altcoins. Previously, the SEC had only approved Bitcoin and Ethereum ETFs. This move indirectly opens the door for more altcoin ETFs. It could bring new capital into the market, especially from institutional investors who prefer regulated products.
Therefore, analysts now expect more progress regarding ETF applications for cryptocurrencies like XRP, SOL, and ADA. Some platforms have already submitted separate ETF applications for these tokens, and this new approval may increase these opportunities.
The release of Echo tokens has sparked discussions for Binance Alpha.
Also on July 2, the Binance Alpha platform added the Echo protocol (ECHO). Echo is a cross-chain protocol connecting Bitcoin and DeFi. It allows users to transfer Bitcoin across other blockchain networks, opening up new use cases.
To support this launch, Binance Alpha platform has initiated a one-day airdrop event. Users only need to redeem 15 Alpha points to receive 625 ECHO tokens. This has sparked heated discussions in a short time, especially among traders looking to benefit from free token airdrops.
The airdrop ends after 24 hours, but trading on the Binance Alpha platform continues. The launch of Echo indicates that new projects can quickly gain attention through platform listings and giveaway activities.
Ethena Unlock adds $11 million to market supply.
Meanwhile, Ethena (ENA) unlocked tokens worth approximately $11 million. This means these tokens can now be freely traded or sold. Unlock activities typically affect prices as they increase the number of tokens in circulation.
If demand is insufficient to match new supply, token prices may decline. Therefore, traders typically closely monitor these unlocking activities.
U.S. employment data on July 3 may influence the direction of the cryptocurrency market.
On July 3, the U.S. government will release several labor market reports that could affect investor sentiment in the cryptocurrency market. These reports include non-farm payroll data, unemployment rates, and weekly initial unemployment claims—all of which will be announced before the U.S. market opens.
The employment situation report released by the U.S. Bureau of Labor Statistics (BLS) is expected to show that approximately 120,000 new jobs were added in June, down from 139,000 in May. Meanwhile, the unemployment rate may rise from last month's 4.0% to 4.3%. Investors will also pay attention to average hourly earnings and hours worked to assess inflationary pressures.
In addition to this data, the U.S. Department of Labor will also release the weekly initial unemployment claims for the week ending June 28. An increase in initial unemployment claims may indicate weakness in the labor market. On July 2, ADP's private sector employment data showed a decrease of 33,000 jobs, suggesting a potential cooling trend in hiring.
Earlier this week, JOLTS reported an unexpected increase in job vacancies to 7.77 million in May, indicating that demand for workers remains strong despite interest rate pressures.
In markets like cryptocurrency, weak labor data often leads investors to expect that the Federal Reserve will adopt a more accommodative monetary policy. As traders turn to risk assets, this shift could trigger a rise in Bitcoin and altcoins. However, strong employment growth or a decline in unemployment rates may heighten expectations for policy tightening, which typically puts pressure on cryptocurrency prices.
Binance will delist five tokens on July 4, 2025.
Binance will delist ALPHA (Stella), BSW (Biswap), KMD (Komodo), LEVER (LeverFi), and LTO Network (LTO) from its spot trading platform on July 4 at 03:00 (UTC). This delisting is a result of Binance's regular review of its development activities, cybersecurity, liquidity, compliance, and community engagement.
Once spot trading stops, all open orders will be canceled, and trading bots will be terminated. The recharge function will close on July 5, while the withdrawal function will remain until September 3, after which tokens will be converted to stablecoins at Binance's discretion.
Delisting usually triggers sell-offs, especially for assets with limited trading on exchanges. It is strongly recommended that holders withdraw or transfer funds before the deadline to avoid potential losses or forced redemptions.
The Cardano ETF is expected to make a decision in late July.
Cardano (ADA) may face a critical regulatory moment this month. The U.S. Securities and Exchange Commission (SEC) is currently reviewing a proposal for an independent spot ETF linked to ADA. While no specific date has been set, the final decision deadline is expected to be mid-July based on standard review timelines.
Earlier this week, the SEC approved Grayscale's Digital Large Cap Fund (GDLC) to convert into a multi-asset spot ETF. This fund covers Bitcoin, Ethereum, Ripple (XRP), Solana, and Cardano. While this is not a direct investment ETF for ADA, it allows investment in ADA within a regulated environment through GDLC tools. Analysts believe this approval may signal progress for independent altcoin ETFs, including Cardano.
At the beginning of 2025, the market predicts a high likelihood of ADA ETF approval. However, in recent weeks, market sentiment has cooled, and signals from regulators have become fewer. Nevertheless, the approval of ETFs supports the broader acceptance of altcoins, which, to some extent, bolsters the likelihood of ADA's approval.
If the SEC fails to approve the Cardano ETF before the July deadline, it may opt to extend the review process. This could lead to the final decision being postponed until October 2025.
More ETF deadlines are expected to arrive in late July.
Several important altcoin ETF decisions will be announced by the end of this month. VanEck must make a decision on its spot Avalanche (AVAX) ETF application before July 25, while Franklin Templeton's proposals for Solana (SOL) and XRP have deadlines around July 31. These timelines follow the precedent set by Grayscale GDLC's approval, and if these applications are approved, it may reinforce the trend of broader adoption of altcoin ETFs.
The previously approved momentum may draw the attention of regulators and the market towards AVAX, SOL, and XRP. Approvals for these projects would signify a continued shift in how institutional investors access altcoins, potentially expanding investment options in cryptocurrency. Conversely, delays or rejections may signal a pause in the progress of altcoin ETFs.
As each deadline approaches, market reactions and investor comments are worth looking forward to.
Macroeconomic reports and unlocks will continue throughout the month.
In addition to ETFs, other important events include U.S. inflation data on July 15 and producer price index data on July 16. If these reports change expectations regarding interest rates, they could also impact the cryptocurrency market.
Token unlocks will continue throughout July. On July 11, Immutable (IMX) and io.net (IO) will unlock tokens worth $11 million and $10 million, respectively. Aptos (APT) will unlock tokens worth $56 million on July 12. On July 16, Arbitrum (ARB) will unlock tokens worth $35 million. One of the largest unlocks will occur on July 18, when Trump Coin ($TRUMP) will release tokens worth $465 million, accounting for 25% of its total supply.
On July 20, ZRO will unlock $51 million, accounting for more than 23% of its circulating supply. If buyers cannot absorb the new supply, such a large-scale unlock could put pressure on the altcoin market.
