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A crypto analyst has made a rather cryptic prediction, suggesting that the <a href="https://bitcoinist.com/sec-grants-historic-approval-for-ethereum-etfs/" rel="nofollow">approval of Ethereum Spot ETFs</a> by the United States Securities and Exchange Commission (SEC) could unleash a new wave of “animal spirits.” This term in crypto is often used to describe an irrational exuberance and optimism that fuels financial markets.&nbsp; 
<h2 id="ethereum-spot-etf-to-reignite-animal-spirits">Ethereum Spot ETF To Reignite Animal Spirits</h2> 
In an X (formerly Twitter) <a href="https://x.com/thedefivillain/status/1793357178859888878" rel="nofollow">post</a> on May 22, a crypto analyst identified as “the DeFi Villain,” made a bold forecast, anticipating the resurgence of the <a href="https://bitcoinist.com/its-all-about-risk-top-analyst-reveals-why-he-sold-all-his-bitcoin-for-altcoins/" rel="nofollow">bull run altcoin season</a> following the SEC’s approval of <a href="https://www.newsbtc.com/news/ethereum/when-spot-ethereum-etfs-go-live-expect-a-bloodbath/">Ethereum Spot ETF</a>. The analyst revealed that the approval could let loose “animal spirits,” driving renewed demand and positive sentiment in the market and possibly resulting in a bull market.&nbsp; 
The analyst outlined a long list of <a href="https://www.newsbtc.com/news/altcoins-maniac-phase-preparing-analysts-call-for-next-leg-up/">altcoins</a> that outperformed and experienced remarkable rallies in 2021. These rallies propelled each of their market capitalizations from mere hundreds of millions to billions in the span of a few days and months.&nbsp; 
Among the cryptocurrencies highlighted by DeFi Villain, some notable altcoins recorded a massive rise in market capitalization, including <a href="https://bitcoinist.com/dogecoin-etfs-move-to-the-fore/" rel="nofollow">Dogecoin (DOGE)</a>, THORChain (RUNE), Filecoin (FIL), Binance Coin (BNB), Axie Infinity (AXS), Shiba Inu (SHIB), and others. 
According to the crypto analyst, Dogecoin witnessed a 10x increase in one day, in January 2021. While RUNE market capitalization surged from $200 million to $5 billion in just five months.&nbsp; 
One of the most remarkable increases was seen in <a href="https://www.newsbtc.com/news/filecoin-on-fire-analyst-torches-doubters-with-15-target/">Filecoin</a> which almost reached the current <a href="https://bitcoinist.com/why-ethereum-market-cap-higher-than-all-altcoins/" rel="nofollow">market capitalization of Ethereum</a>. The cryptocurrency had jumped close to a whopping $400 billion during the altcoin bull run in 2021.&nbsp; 
Other cryptocurrencies like AXS surged from a market capitalization of $200 million to $10 billion, with its Fully Diluted Value (FDV) topping $43 billion at some point. Additionally,<a href="https://www.newsbtc.com/currencies/binance-coin-price/"> Binance Coin</a>, which was already worth $6 billion in early 2021 and among the top 20 cryptocurrencies, had witnessed a mega 8x pump in 20 days, reaching a staggering $50 billion in February 2021.&nbsp; 
Even popular meme coins like <a href="https://www.newsbtc.com/shiba-inu/shiba-inu-breaks-out-of-bull-flag-pattern-like-signaling-uptrend/">Shiba Inu (SHIB)</a> had rallied hard, jumping from $4 billion to $40 billion in less than a month. Ethereum Cash (ETC) also saw its market capitalization rise from $600 million to $17 billion in five months. 
These massive surges during the <a href="https://bitcoinist.com/bitcoin-shatters-profit-taking-streak-2021-bull-run/" rel="nofollow">2021 bull run</a> underscore the potential altcoins have on the crypto market and how insane they can surge once the altcoin season hits and the dominance for Bitcoin shifts to lesser cryptocurrencies.&nbsp; 
DeFi Villain has <a href="https://x.com/thedefivillain/status/1793357235042893940" rel="nofollow">predicted</a> that the final leg for <a href="https://bitcoinist.com/meme-coin-showdown-can-pepe-beat-shiba-shootout-this-bull-cycle/" rel="nofollow">meme coins</a> is likely going to be “Vertical and Brutal,” suggesting that these volatile cryptocurrencies could have another powerful rally to new highs this market cycle.&nbsp; 
<h2 id="etf-approval-nullifies-sec-s-previous-security-claims">ETF Approval Nullifies SEC’s Previous Security Claims?</h2> 
Over the past few months, the <a href="https://bitcoinist.com/lawyer-sec-approve-spot-ethereum-etfs/" rel="nofollow">US SEC</a> has made claims implying that Ethereum, the second largest cryptocurrency, was <a href="https://bitcoinist.com/ethereum-security-considered-in-eth-spot-etf/" rel="nofollow">considered a security</a>. However following the authorization of Ethereum Spot ETFs, the SEC has finally recognized Ethereum as a non-security.&nbsp; 
Calling the regulator out on this <a href="https://bitcoinist.com/sec-deep-trouble-with-crypto-cpost-ethereum-etf/" rel="nofollow">contradiction</a>, Paul Grewal, Chief Legal Officer (CLO) of Coinbase <a href="https://x.com/iampaulgrewal/status/1793823353608044911?s=46" rel="nofollow">disclosed</a> that if Ethereum which lacks “contractual agreement or undertaking,” is no longer considered a security by the SEC, then Bitcoin (BTC), which operates similarly without the above agreements, should also be a non-security. 
Grewal posed a compelling question regarding the classification of 12 other cryptocurrencies, which can be compared to Ethereum and Bitcoin in terms of their non-security treatment by the SEC. The Coinbase CLO disclosed that the implications that these 12 other cryptocurrencies are considered <a href="https://bitcoinist.com/ethereum-in-the-hot-seat-sec-security-label-looms/" rel="nofollow">securities</a> despite also lacking contractual agreement or undertaking raises the question about the SEC’s possible lack of regulatory clarity and <a href="https://bitcoinist.com/crypto-kraken-fights-sec-definition-securities/" rel="nofollow">inconsistent regulatory approach to different crypto assets</a>.&nbsp; 
<img loading="lazy" decoding="async" class="size-medium" src="https://www.tradingview.com/x/SSjwOhnP/" alt="Ethereum price chart from Tradingview.com" width="3286" height="1576">

Analyst Says Ethereum Spot ETFs Approval Will See “Animal Spirits” Reignite Crypto – What This Means

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