XRP and Cardano May Draw Institutional Investment in Next Altcoin Cycle Due to ETF Potential

  • Market analysts predict that institutional investors will prioritize older, ETF-related cryptocurrencies like XRP and Cardano over newer tokens during the upcoming altcoin cycle.

  • With over 26 million tokens saturating the market, liquidity concerns may limit broad altcoin rallies, favoring established coins.

  • Experts forecast short-lived price surges rather than a prolonged altseason, driven by selective capital flows into dinosaur cryptocurrencies.

Discover why older cryptocurrencies with ETF potential like XRP and Cardano are set to dominate the next altcoin season. Explore expert insights on institutional investments and market dynamics in 2025. Stay informed and position your portfolio wisely.

What Are Older Cryptocurrencies with ETF Potential and Why Do They Matter in the Altcoin Season?

Older cryptocurrencies with ETF potential refer to established digital assets like XRP and Cardano that have been in the market for several years and are now linked to potential exchange-traded fund approvals. These coins, often called “dinosaur cryptocurrencies,” are gaining traction as institutional investors seek regulated entry points into the crypto space. In the context of an impending altcoin season—a period of heightened interest and price appreciation in alternative coins beyond Bitcoin—these assets are poised to draw significant capital due to their maturity and regulatory prospects.

How Will Institutional Investors Influence the Flow of Funds to Dinosaur Cryptocurrencies?

Institutional investors, coming from traditional finance, prioritize stability and regulatory clarity when entering the cryptocurrency market. According to Maen Ftouni, CEO of CoinQuant, a provider of algorithmic trading tools, these players are focusing on well-established coins with ETF potential. During a panel at the Global Blockchain Congress 2025 in Dubai, Ftouni emphasized that the current influx of funds is driven by ETF-related opportunities, explaining the recent performance of assets like XRP and Cardano.

“Since the flow of funds is predominantly coming from traditional finance and ETFs at the moment, those investors are mainly eyeing these major tokens with a chance of eventually securing ETF approval, which explains the recent rise in these dinosaurs,” Ftouni stated. This perspective is supported by data showing a surge in institutional participation, with reports from market trackers indicating that ETF filings for XRP have increased investor interest by over 30% in early 2025.

The emphasis on dinosaur cryptocurrencies stems from their proven track records and lower volatility compared to newer tokens. For instance, Cardano’s focus on scalability and sustainability has positioned it as a candidate for ETF products, attracting hedge funds and pension managers. This selective investment strategy could reshape the altcoin season, channeling billions into fewer, more reliable assets rather than dispersing capital across thousands of emerging projects.

Frequently Asked Questions

What Makes XRP and Cardano Stand Out as Older Cryptocurrencies with ETF Potential?

XRP and Cardano distinguish themselves through years of development, strong ecosystems, and active pursuit of ETF approvals. XRP’s role in cross-border payments via Ripple’s network provides real-world utility, while Cardano’s research-driven approach ensures robust security. These factors make them attractive for institutional ETFs, potentially unlocking access for traditional investors without direct crypto custody risks.

Will the Next Altcoin Season See a Prolonged Rally in Dinosaur Cryptocurrencies?

The next altcoin season may feature short bursts of rallies in dinosaur cryptocurrencies rather than a sustained boom, as noted by economist and trader Alex Kruger. With market saturation exceeding 26 million tokens, demand will likely concentrate on ETF-eligible assets, leading to targeted gains over weeks rather than months. This dynamic encourages strategic positioning in established coins for better liquidity and returns.

Key Takeaways

  • Focus on ETF Prospects: Older cryptocurrencies like XRP and Cardano are primed for institutional inflows due to their regulatory pathways.
  • Market Saturation Challenges: Over 26 million tokens dilute broad demand, limiting altseason duration to short surges.
  • Strategic Investment Advice: Investors should prioritize dinosaur cryptocurrencies to capitalize on traditional finance integration.

Conclusion

As the cryptocurrency market gears up for another altcoin season in 2025, older cryptocurrencies with ETF potential such as XRP and Cardano are set to lead the charge, absorbing significant institutional capital amid a landscape of over 26 million tokens. Experts like Maen Ftouni and Alex Kruger highlight how dinosaur cryptocurrencies’ maturity and regulatory appeal will drive selective market dynamics, tempering expectations for prolonged rallies. This evolution underscores the growing bridge between traditional finance and blockchain, offering opportunities for informed investors to navigate volatility. Stay ahead by monitoring ETF developments and focusing on established assets for long-term resilience.

Source: https://en.coinotag.com/xrp-and-cardano-may-draw-institutional-investment-in-next-altcoin-cycle-due-to-etf-potential/