Summer daze

Altcoins are under scrutiny after a lackluster first half of a year dominated by Bitcoin. Let the second half begin!

Ethereum on a YTD basis (-26%) has been a sore thumb sticking out, considering its status as the No. 2 crypto, not to mention the world of opportunity supposedly opening up on the DeFi front. It's easy to forget that $4,700 ETH was on the table less than a week after the U.S. presidential election that set off a wave of crypto euphoria in large part connected with the perception that favorable regulatory conditions were around the bend.

ETH, as of 7:30 a.m. (EST) today, stood stoically just shy of $2,500 following a seven-day stretch during which time the second-largest crypto quietly gained 1.5%, versus a 1.1% gain for Bitcoin in that same span, per CoinGecko.

XRP is another big altcoin widely viewed as possibly poised for some much-anticipated upside. We recall how it wasn't until mid-November of 2024, about two weeks after Trump won a second (non-consecutive) term as U.S. president, that the coin associated with Ripple even found its way from sixty cents to the coveted $1 mark. Then it was off to the races. XRP came close to reaching its all-time high of $3.40. Like, less than a dime away. It was $3.31 as of Jan. 17.

In 2025, on a YTD basis, XRP is up 7%. The fourth-largest token has gained 0.6% in the past week.

And then there is Solana. Likewise, SOL is also being closely watched as an altcoin influencer, particularly with landmark funds on the verge of public availability. The spot price of SOL is down more than 20% on the year. But we sense traces of mojo as SOL, on some fresh ETF rumblings, is up 3% over the past week.

Since last July, Bitcoin has surged 70%. In 12 months, BTC's spot price shook free from $60K-$70K-range-bound shackles, attained the once unthinkable $100,000 level — then surprisingly surrendered it — only to regain the six-figure handle, and then some. Oh, it's a post-halving, post-Biden bull cycle alright. Rarified air never smelled so ... bland.

Why does it seem so slow out here? Summertime lethargy?

The cycle, while bullish, long has been plagued by "Nowhere Man" behavioral patterns, with BTC taking its time, neither worrying, nor hurrying, at least not until some other coin lends it a hand.

Benzinga, citing CryptoCon, a trader/pundit, pointed out that yesterday, June 30, marked the 195th day of sideways BTC price action going back to mid-December.

Meanwhile, per IntoTheBlock data, large transaction volume has decreased by 6.9% while daily active addresses fell by 10.5%.

"Bitcoin has spent most of its time in a grinding, non-directional range," Benzinga said.

Tomorrow will mark the debut of a Solana ETF billed as the first-ever crypto fund that generates staking rewards, said REX Shares, one of the two firms behind the offering. This product is being jointly issued by REX and Osprey Funds.

The SEC had previously warned that the proposed Rex-Osprey ETF may not meet the basic legal definition of an ETF, though that hurdle appears to have been cleared or fallen away, as the regulator apparently gave its blessing to a structural workaround in which the fund is treated as a "taxable C-Corp," as The Block explained.

The upshot is that staking distributions to holders will be taxed inside the fund before being distributed to holders as dividends; the management fees for both funds are 0.75%, though the income-tax accrual will cause overall fees to be higher in most cases, according to The Block.

As the name suggests, the REX-Osprey SOL + Staking Fund will give investors direct exposure to spot SOL along with staking income.

Nine issuers, including Fidelity, Franklin and Invesco, are awaiting green lights on spot SOL ETF proposals. Bloomberg analysts view these new products as almost (95%) guaranteed to get across the SEC finish line.

Cointelegraph, echoing Bloomberg analysts, has said the onset of Solana ETFs could spark “altcoin summer.”