Interest in altcoins has surged recently, indicated by a significant drop in Bitcoin’s market dominance, now at 57%, its lowest since October 2024. CoinMarketCap’s Altcoin Season Index has risen to 70, a three-month peak, reflecting growing enthusiasm in the altcoin sector. This surge coincides with the anticipated launch of Rex Osprey’s Dogecoin and XRP exchange-traded funds (ETFs) set for tomorrow, marking a pivotal moment for the $1.72 trillion crypto market.
Over the past year, XRP has seen an impressive rise of 416%, while Dogecoin has climbed 162%. In comparison, Bitcoin and Ethereum, the two leading cryptocurrencies by market capitalization, have recorded increases of 96.2% and 94.1%, respectively. Notably, this will be the inaugural spot XRP ETF, while Teucrium Investment Advisors previously launched the first XRP-based ETF—the 2x Long Daily XRP ETF—in April.
Jake Hanley, managing director of Teucrium, expressed optimism about the growing XRP ETF landscape. “We have long believed this outcome was inevitable,” he stated, referring to the buzz surrounding the launch. “The XRP Army is lighting up social media around this launch, and I expect Rex will do well.”
The proposed dogecoin ETF is seen as a significant development in legitimizing a cryptocurrency that originated as a meme. However, critics highlight its fundamental lack of utility. Kyle Chassé, the founder of MV Global, noted that while the ETF signals bullish sentiment, Dogecoin is largely reliant on community sentiment and brand recognition. “Its value is almost entirely driven by sentiment, community, and brand recognition,” he explained. “The ETF will supercharge these factors, but it doesn’t address the long-term question of what Dogecoin is beyond a cultural touchstone.”
Doug Colkitt, an initial contributor to blockchain Fogo, echoed a skeptical viewpoint. He remarked that “an ETF doesn’t turn a meme into a blue chip; it just gives institutions a cleaner way to speculate on the joke,” suggesting that the introduction of an ETF won’t alter the underlying fundamentals of Dogecoin.
The excitement around the Rex Osprey funds has led to a wave of new altcoin ETF filings, adding to an already crowded marketplace. By the end of August, there were over 90 crypto ETF applications spanning various tokens, including Litecoin, Polkadot, and Avalanche. Recent filings include one from Bitwise for an Avalanche ETF, joining other notable firms like Grayscale and VanEck. Tuttle Capital pursued three “Income Blast” ETFs, while Canary Capital updated its litecoin ETF prospectus, awaiting final approval from the SEC in early October.
The SEC is also expected to make decisions on a number of other ETF applications this October, including proposals for Solana, XRP, and Cardano funds. Kevin Rusher, founder of RAAC, commented on the long-term implications of ETF popularity, suggesting that as investors become more sophisticated, interest might diversify into complex financial offerings, such as yield-generation strategies within the digital finance milieu. “Crypto IPOs and digital asset treasury companies will also compete with these new ETFs for assets,” he added, indicating a potentially dynamic evolution in the crypto investment landscape.
