Key Takeaways
Are investors still buying altcoins despite market fear?
Yes. Solana, Ethereum, and XRP saw nearly $435 millions in inflows last week alone.
Could ETF approvals spark the next altcoin breakout?
Yes. ETF delays may end soon as the U.S. shutdown nears resolution.
Despite market jitters, investor appetite for altcoins is holding steady.
Data from CoinShares showed major inflows into Solana [SOL], Ethereum [ETH], and Ripple’s XRP [XRP].
With signs that the U.S. government shutdown may soon end, there’s hope that the stalled altcoin ETF approvals for top tokens could be back on track.
Shawn Young, Chief Analyst at MEXC Research, commented on the XRP’s positioning ahead of multiple ETF decision deadlines. He told AMBCrypto,
“XRP stands at the crossroads of regulation, liquidity, and macro risk — a convergence that rarely passes quietly.”
Altcoins attract capital as investors buy the dip
Ethereum saw $205 million in inflows last week, with a notable $457 million flowing into a 2x leveraged ETP.
Solana and XRP followed with $156 million and $73.9 million in inflows, respectively, likely caused by anticipation around upcoming ETP launches.
Source: CoinShares
In contrast, Bitcoin [BTC] experienced outflows of $946 million, perhaps a short-term rotation into alternative assets.
While U.S. investors led the outflows, regions like Germany, Switzerland, and Canada saw combined altcoin inflows of over $144 million, viewing the recent price dip as a buying opportunity.
Is altcoin accumulation nearing its end?
According to Joao Wedson, CEO of Alphractal, many altcoins have likely completed their final accumulation phase, which could cause a breakout.
Source: Alphractal
As talk of a long bear market continues, some investors are quietly moving into memecoins, DeFi, and gaming tokens.
These sectors often gain attention after long periods of low activity, when prices are flat and fear is high.
Source: Alphractal
This is usually when bigger players start buying in.
Source: Alphractal
Recent inflows into top altcoins means momentum may be shifting. If this continues, investors might start moving into smaller, riskier tokens, hoping to catch the next big move.
Government shutdown nears end, ETF hopes rise
With the U.S. government shutdown now three weeks in, signs of a resolution are emerging.
White House adviser Kevin Hassett said the deadlock is “likely” to end this week. This could restart crypto-related regulatory processes.
Several ETF applications for altcoins like Solana, XRP, and Litecoin [LTC] have been delayed due to the shutdown. A return to normal operations could clear the path for approvals and fresh institutional activity.
Source: X
Meanwhile, Democratic lawmakers are reportedly set to meet with crypto industry leaders this week, so regulatory talks are still moving forward behind the scenes.
