2024 began with the U.S. Securities and Exchange Commission (SEC)’s landmark approval of a Bitcoin spot ETF. Despite Bitcoin’s stable price in the $45,000-$47,000 range, the altcoin market has witnessed surges, most notably Ethereum Classic (ETC), which surged 48%, outperforming Ethereum (ETH), Cardano (ADA), and Avalanche ( AVAX) recorded double-digit gains.
The recent surge in altcoin prices appears to have been triggered by growing expectations within the cryptocurrency community about the possibility of the SEC approving spot-based ETFs for major alternative cryptocurrencies. Crypto analyst Lark Davis, popularly known as “Crypto Lark,” speculates that an Ethereum spot ETF could receive approval around May, representing a significant step forward for the second-largest cryptocurrency. Bloomberg analyst Eric Balchunas also predicted a 70% chance of an Ethereum ETF appearing in May.
A16Z General Counsel Miles Jennings said the SEC’s approval of the Ethereum futures product signals a favorable stance on Ethereum not being classified as a security.
Crypto Lark also mentioned the possibility of an XRP ETF in the future, considering the landmark ruling in the Ripple SEC lawsuit that ruled that XRP is not a security. The cryptocurrency community is eagerly awaiting the approval of the next big ETF after Bitcoin, with Steve McClurg, co-founder and chief investment officer of Valkyrie Funds, hinting at the potential of an Ethereum or XRP ETF.
Altcoin Boom in 2024—Arrived?
Moreover, beyond these developments, 2024 will host other important events, including the Ethereum Dencun upgrade and the Bitcoin halving. Analysts are predicting an unprecedented altcoin boom in 2024, which Lark Davis envisions as “the biggest altcoin party we’ve ever seen.” This optimistic outlook is partly fueled by historical precedent, where the SEC’s approval of a BTC futures fund led to an incredible rally that saw the altcoin soar more than 500%.
If these historical trends repeat, Ethereum, XRP, and other altcoins could see significant growth in 2024, potentially overtaking Bitcoin in terms of market dominance. Overall, the cryptocurrency community is gearing up for a year full of anticipation, with regulatory developments and major events shaping the trajectories of various cryptocurrencies.