Bitcoin, Ethereum ETFs Face Outflows but Altcoins Could Lead the Next Rally, Grayscale Predicts
Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) face renewed ETF outflows and macroeconomic uncertainty.
Spot Bitcoin and Ethereum ETFs recorded around $500 million and $600 million in weekly net outflows over the past week, which Charles Schwab equity research director Adam Lynch attributes to tactical institutional trading rather than weakening long-term demand.
Investors are using crypto ETFs to move substantial capital over shorter periods, benefiting from their liquidity and cost efficiency.
Lynch expects crypto ETFs to expand beyond Bitcoin and Ethereum to assets including XRP (CRYPTO: XRP), Solana (CRYPTO: SOL) and Dogecoin (CRYPTO: DOGE).
What Could Trigger the Next Crypto Rally?
In a Schwab Network interview, Lynch identified regulatory progress and Ethereum’s upcoming Q4 network upgrade, aimed at improving speed and capacity, as potential catalysts.
Despite the Clarity Act’s setback, the CFTC and SEC are advancing separate crypto regulatory initiatives.
Grayscale research head Zach Pandl expects Bitcoin to withstand further modest rate hikes as demand for scarce assets remains supported by fiscal deficits and currency debasement concerns.
He believes Bitcoin bottomed near $58,000 in June, despite Fed rate hikes, rising bond yields and regulatory uncertainty.
Why Grayscale Favors ETH, SOL and BNB
In a Coinage interview on Oct.15, Pandl identified Ethereum (CRYPTO: ETH), Solana (CRYPTO: SOL) and BNB Chain (CRYPTO: BNB) as overlooked opportunities with rapidly rising institutional adoption of stablecoins, tokenized deposits and real-world assets.
Investor enthusiasm is accelerating for for privacy-focused cryptocurrencies and revenue-generating protocols.
He expects trillions of dollars in TradFi assets to move on-chain, positioning established smart contract platforms as critical infrastructure.
While privacy technologies and perpetual futures gain traction, Pandl believes investors are underestimating the long-term potential of established blockchain ecosystems.
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