The cryptocurrency market is experiencing a significant transformation as institutional adoption of ETFs and tokenization of real-world assets challenge the traditional four-year cycle model. Since the 2024 launch of Bitcoin and Ethereum ETFs, $34 billion in net inflows have been recorded, attracting pension funds, advisory firms, and commercial banks. These developments have shifted crypto from a retail speculative asset to an institutional allocation, with Bitcoin ETFs now managing over $150 billion, representing 6% of BTC supply, and Ethereum ETFs controlling 5.6% of ETH circulation.
The SEC's recent approval of a universal ETP listing standard has accelerated this trend, paving the way for Solana and XRP. This shift, termed 'crypto asset rotation,' sees institutional buying pushing cost bases higher and forming new price floors. Additionally, stablecoins are expanding into payments, lending, and fiscal management, with a $30 billion real-world asset market emerging. The CFTC's approval of stablecoins as derivatives collateral has opened new institutional use cases, integrating stablecoins into the real economy and building real capital markets on-chain. This evolution suggests crypto is transitioning from a speculative asset to a permanent financial infrastructure.
Bitcoin's Four-Year Cycle Faces Disruption Amid ETF and Institutional Growth
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