The crypto market is going through one of its strangest weeks. Altcoin ETFs are breaking trading records, but altcoin prices are still falling. Bitcoin has dropped below $98,000, marking its worst November in years, and altcoins are sliding even harder.
The big shock is that this crash is happening while new altcoin ETFs are performing better than anyone expected. The Canary XRP ETF, named XRPC, launched on Nasdaq and recorded $58.5 million in first day volume. This beat the previous altcoin ETF record held by Bitwise Solana at $57 million. More than 2.26 million shares were traded, and XRP price failed to hit the $3 mark.
Why ETFs Did Not Trigger A Rally
Investors expected a strong rally after these ETF launches. Instead, the market dipped. According to Canary Capital CEO Steven McClurg, ETF growth will be strong for a while because crypto is a new asset class, but only top coins will benefit long term. He compared crypto ETFs to commodity ETFs where gold dominates, silver follows, and smaller metals barely attract attention. Crypto may follow the same pattern with only a few strong winners and many weak performers.
The drop is not only happening to XRP or SOL. The broader crypto market is falling with Bitcoin weakness pulling everything down. Rising dominance, macro pressure and profit taking have all added to the sell off. Even strong ETF launches are not enough to fight the wider negative trend.
Analysts are watching Bitcoin dominance closely. It was rejected again at the 50 week EMA, the same pattern seen before the 2021 altcoin season. A sharp fall in dominance usually signals that altcoins are preparing for a big run.
One analyst who predicted a mini altcoin season in 2023 now believes the major altcoin season will arrive in the first quarter of 2026. If that plays out, coins like XRP, HBAR, SOL and ETH may see their strongest rallies after Bitcoin completes its next cycle move.
ETF launches are proving that institutional interest is rising fast. Money is flowing in, but price action is still lagging behind. Once market sentiment shifts and Bitcoin dominance breaks down, the altcoin rally investors are waiting for may finally begin.
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