The United States Securities and Exchange Commission (SEC) has granted approval for a groundbreaking multi-cryptocurrency exchange-traded fund (ETF). This product holds major assets including Bitcoin, Ethereum, Solana, Cardano, and XRP.
Despite this significant regulatory milestone, the anticipated boost to alternative cryptocurrencies (altcoins) has largely failed to materialize. Market analysts observe a restrained response across non-core tokens.
Investor focus has instead shifted decisively toward established Layer 1 blockchains like Ethereum, Solana, and Bitcoin. These foundational networks are perceived as primary beneficiaries of growing institutional on-chain asset adoption and thriving developer ecosystems.
Market analyst Ran Neuner reflects this sentiment, recommending investors allocate 80-90% of crypto portfolios to leading Layer 1 blockchains. The remaining 10-20%, he suggests, should go towards foundational Decentralized Finance (DeFi) platforms.
This strategic move highlights a broader market trend prioritizing assets with demonstrated fundamentals, proven utility, and enhanced regulatory clarity over more speculative altcoins.
The net effect of the SEC’s multi-crypto ETF approval appears to be a strategic realignment within the crypto market. Capital is increasingly flowing towards major Layer 1 blockchain assets and crypto-related equities, marking a discernible shift in investor preference.