#你看好哪一个山寨币ETF将通过？

Three Positive Factors in the Altcoin Market

Currently, many investors are almost despairing of the altcoin market, but the most pessimistic time may be just when the turning point is about to arrive. Some positive factors have emerged in the altcoin market, and there is no need to be overly pessimistic about the altcoin situation.

1. Ethereum ETF Introduces Staking to the Agenda

In recent days, Grayscale and 21Shares have submitted applications to the U.S. SEC, planning to allow their Ethereum ETF to stake the ETH held. It is estimated that giants like BlackRock and Fidelity will also follow suit soon.

The risk-free staking yield of over 3% for Ethereum is still very attractive to old money. Once the staking function is approved, the appeal of the Ethereum ETF will significantly increase, and the buying pressure for the ETF will drive the Ethereum price to rise strongly.

Moreover, Ethereum is highly correlated with the altcoin market. Once Ethereum starts to rise, it will drive the upward trend of altcoins.

2. FTX Compensation Funds Are About to Enter the Market

The first batch of FTX compensation has already started, with a total amount expected to be between $7 billion and $8 billion, primarily distributed in the form of stablecoins.

On one hand, FTX users generally have a high risk appetite; on the other hand, altcoins are generally at low levels right now, making them more cost-effective from a risk-reward perspective. Therefore, a considerable portion of the compensation funds will flow into the altcoin market.

3. Altcoin ETFs Are Getting Closer

Recently, the SEC accepted the application for a spot ETF for LTC, and in the past few days, it has also accepted spot ETF applications for XRP, DOGE, and SOL. The market is generally optimistic about the approval of this altcoin ETF, especially the LTC spot ETF, which has basically no obstacles.

This means that the U.S. altcoin market is about to welcome a clearer regulatory environment. This will play a significant positive role in restoring market confidence.

4. Improvement in Funding Conditions

TGA has begun to decrease, potentially injecting about $600 billion in liquidity into the market between mid-February and early April; in addition, the Fed's RRP balance has dropped from a peak of $2.5537 trillion to $77.8 billion, gradually approaching zero, and is close to the conditions for the Fed to stop tapering. Stopping the tapering does not seem far off.