Institutional investors may be preparing to look beyond Bitcoin and Ethereum as a new phase of crypto exchange-traded funds (ETFs) emerges in the United States.
With several altcoin-focused ETF filings already on the SEC’s desk, analysts are describing this as a pivotal moment — one that could define the next multi-year cycle of institutional adoption.
Despite delays caused by the government shutdown, at least five altcoin ETF applications were submitted to regulators during October, signaling that major issuers are racing to capture the next slice of digital-asset exposure. “The first Bitcoin ETFs opened the door, Ethereum ETFs pushed it wider, and now capital is moving into the room,” said Leon Waidmann, research head at Onchain. “This isn’t hype — it’s regulatory confidence becoming capital flow.”
Ethereum’s Surge Sets the Stage
Recent ETF performance supports that view. Spot Ether ETFs brought in $9.6 billion during Q3 2025 — surpassing Bitcoin’s $8.7 billion in inflows, according to SosoValue. For many market watchers, that crossover marks a psychological turning point: institutional portfolios are expanding from a single-asset narrative into a broader crypto framework.
Van de Poppe: “Altcoins Are Nowhere Near Their Peak”
Adding to the bullish picture, trader and analyst Michaël van de Poppe argued this week that the broader altcoin market remains in its “mid-cycle phase.” Sharing a long-term chart of altcoin capitalization relative to Bitcoin, he noted that valuations now mirror those seen in Q4 2019 — periods that historically preceded explosive growth.
This is one of the best charts to be valid in the markets, right now.
The #Altcoin valuations are at the same valuation as Q4 2019.
We’re not at the peak of the market.
We’re in the middle.
We’re at Q4 2016 or Q1 2020. pic.twitter.com/p2R94UmOwn
— Michaël van de Poppe (@CryptoMichNL) October 30, 2025
“We’re not at the top,” van de Poppe said. “We’re in the middle. The market structure right now resembles late 2016 or early 2020 — both moments that came right before major bull runs.”
The chart highlights a similar accumulation pattern to previous cycle lows, with altcoin dominance hovering near historical support levels and the MACD indicator preparing for a potential bullish crossover. Analysts see this as an early technical sign that institutional altcoin accumulation may soon accelerate — especially as regulated ETF products emerge.
Smart Money and Institutional Behavior Align
Data from blockchain analytics firm Nansen shows that professional crypto traders — often referred to as “smart money” — have already started rotating into major DeFi assets such as Uniswap (UNI), Aave (AAVE), and Chainlink (LINK). Analysts believe this could foreshadow broader institutional positioning ahead of ETF approvals.
The Missing Catalyst: BlackRock
Still, some experts warn that without BlackRock, enthusiasm could be muted. The asset management giant, whose spot Bitcoin ETF attracted $28.1 billion this year, has not yet filed for any altcoin-linked products. According to K33 Research, excluding BlackRock’s fund, spot Bitcoin ETFs collectively saw $1.27 billion in outflows in 2025. “If that pattern repeats,” said K33’s Vetle Lunde, “altcoin ETFs may see slower adoption despite strong investor interest.”
A Market on the Edge of Transformation
While skeptics remain cautious, the combination of growing institutional interest, improving altcoin market structure, and van de Poppe’s cyclical analysis has fueled optimism that crypto’s next phase is already forming. If history repeats, altcoin valuations could be setting the stage for their own version of Bitcoin’s 2020 breakout — one driven this time by Wall Street, not retail investors.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.