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The future altcoin market may only occur among mainstream tokens.
The launch of the ETF for cryptocurrencies is equivalent to siphoning off incremental funds into the crypto space.
Although BTC and ETH have gained through ETFs this round, they have not created a spillover effect for altcoins, which is a sign of the previous altcoin bull runs.
ETFs have changed the flow of funds for traditional investors entering the crypto world. After traditional financial investors buy ETFs, they do not turn to the exchanges for altcoins.
In the future, the approval of mainstream quality altcoin ETFs such as SOL, Dogecoin, LTC, ADA, XRP, SUI, etc., will essentially siphon off potential incremental funds from the crypto space, and the liquidity seepage effect will naturally disappear.
Note that these altcoins through ETFs are the few surviving victories that can live on after the altcoin season, and they account for a significant share of the trading volume among altcoins.
In simple terms, the new incremental funds in the future may only buy altcoins through ETFs and mainstream tokens that are ranked at the top in market capitalization.
If these mainstream quality altcoins intercept the new incremental funds, what will be left for other altcoins in the crypto circle?
It could be a pile of obscure garbage altcoins spiraling down to zero.