While there were glimpses of recovery in the altcoin market towards the end of this week, several popular assets continued to experience downward trends. Notably, Chainlink ( $LINK) saw a 9% decrease, Filecoin ( $FIL) declined by 5%, and Near Protocol (CRYPTO: NEAR) lost over 3% in value, based on data from S&P Global Market Intelligence.
The aftermath of the recent market shake-up following the launch of spot Bitcoin ( $BTC) exchange-traded funds (ETFs) still lingers, contributing to a period of adjustment. Many coins and tokens are slowly recovering from the impact.
Bitcoin, as the dominant cryptocurrency with the highest market capitalization, has significantly influenced the digital currency landscape. The introduction of spot Bitcoin ETFs prompted a shift in crypto investments towards Bitcoin, affecting the performance of altcoins.
As of Friday afternoon, signs suggest that this cycle may be approaching its conclusion. BlackRock’s iShares Bitcoin ETF reached a milestone, surpassing $2 billion in assets under management. The initial rush of capital into Bitcoin-centric assets is expected to normalize into a more gradual flow.
Attention is now turning towards spot crypto ETFs beyond Bitcoin. Grayscale Investments, a key player in introducing spot Bitcoin ETFs, is actively working to list an Ethereum product. Despite the Securities and Exchange Commission (SEC) delaying decisions on approving such products, the anticipation of non-Bitcoin crypto spot ETFs entering the market is rekindling interest in altcoins.
While the altcoin universe is vast, some well-known names like Chainlink, Filecoin, and Near Protocol are worth considering. Investors might find value in these assets as they possess practical functionalities, making them potentially attractive for wider adoption. As the market anticipates the arrival of spot altcoin ETFs, exploring opportunities with familiar names could be a prudent strategy for investors.
