Regulatory actions and interest rate reductions drive a strong resurgence in the altcoin market

The digital currency market is undergoing a remarkable transformation as

and (DOGE) exchange-traded funds (ETFs) attract considerable attention from investors, hinting at the possible start of "Altcoin Season 2025." Data from Coingecko shows the overall crypto market capitalization has climbed to about $4.03 trillion, with major altcoins like (ETH) and XRP driving this momentum. In the last 24 hours, ETH’s value has jumped more than 8%, surpassing $3,640 for the first time since January 2025, while XRP has risen over 16% to nearly $3.60, breaking its previous record from January 2018.

The green light from the U.S. Securities and Exchange Commission (SEC) for XRP and

ETFs marks a turning point for altcoins. After clearing the SEC’s 75-day review, REX-Osprey will see the XRP ETF (ticker: XRPR) begin trading on Friday, with the DOGE ETF (DOJE) debuting Thursday. Notably, the DOGE ETF is the first memecoin-focused ETF in the United States. Experts credit the more efficient approval process under the Investment Company Act of 1940 for this speed, especially when compared to ETFs regulated by the Securities Act of 1933. Nova Dius’s Nate Geraci pointed out that futures-based XRP ETFs already manage close to $1 billion in assets, reflecting robust demand for altcoin investments.

The lineup of altcoin ETF applications is rapidly expanding. As of August 2025, there are more than 90 such proposals pending before the SEC, with most verdicts expected by October 2025. Bloomberg ETF analyst James Seyffart remarked that over 90 applications are in progress, covering altcoins such as

(SOL), (ADA), and (AVAX). The SEC has delayed decisions for some ETFs—including Bitwise’s Dogecoin and Grayscale’s funds—extending their review until November 12, 2025, which signals ongoing regulatory caution. The approval of additional altcoin ETFs is anticipated to broaden institutional access to digital assets and inject more liquidity into the altcoin market.

The launch of XRP and DOGE ETFs is also being analyzed in the context of larger economic trends. The U.S. Federal Reserve is expected to reduce interest rates by 25 basis points on September 17, 2025, a move that could encourage greater investment in high-risk assets like cryptocurrencies. Past patterns indicate that synchronized monetary easing worldwide could fuel a strong rally in altcoins, especially if central banks such as the Bank of England and the Bank of Japan adopt similarly accommodative policies. Analysts from Bull Theory suggest that coordinated easing could push Bitcoin’s price beyond $120,000 and trigger increased inflows to Ethereum ETFs, further boosting altcoins.

Sentiment among investors is shifting in favor of alternative cryptocurrencies. Data from Coinglass reveals that total crypto open interest (OI) has reached an unprecedented $200 billion, while the

OI-weighted funding rate has increased to 0.0129%, a sign of strong optimism. The recent approval of three crypto-focused bills in the U.S. Congress—the GENIUS Act, the Clarity Act, and the Anti-CBDC Act—has further boosted market confidence, with market observers believing that clearer regulations will attract more institutional investments. In addition, Bitcoin’s market dominance has dropped from around 66% to 61% since the week began, indicating growing capital inflows to altcoins from both retail and professional investors.

Although enthusiasm for altcoin ETFs is on the rise, regulatory challenges persist. The SEC’s cautious stance has delayed several applications, including those for Solana, Cardano, and

. Bloomberg’s Seyffart notes that the approval process for innovative financial instruments like crypto ETFs is intricate, often requiring multiple feedback cycles. Still, the SEC’s introduction of "Project Crypto" on July 31, 2025, to update securities regulations for blockchain technology, along with the possible rollout of new generic listing rules by late September, could simplify and speed up approvals. These changes are likely to accelerate the arrival of new altcoin ETFs and provide clearer guidance for investors.

The upcoming weeks are expected to be pivotal for altcoins, as the first wave of altcoin ETFs goes live and global economic trends become more defined. Should the projected Federal Reserve rate cut and worldwide monetary easing occur, it could spark a major rally in the altcoin sector. Meanwhile, SEC decisions on pending ETF applications will be crucial for shaping the U.S. regulatory environment for altcoins, affecting both liquidity and market participation. As the cryptocurrency landscape continues to shift, the performance of XRP and DOGE ETFs may serve as a benchmark for new altcoin products and help usher in Altcoin Season 2025.