The traditional four-year crypto cycle appears to be broken, as institutional adoption through exchange-traded funds, real-world asset tokenization, and stablecoin infrastructure reshapes market conditions.

In a Sept. 24 report, the analyst identified as Ignas noted that the launch of Bitcoin (BTC) and Ethereum (ETH) ETFs in 2024 marked a watershed moment, with crypto ETFs leading all categories with $34 billion in inflows since April.

Attractive for TradFi

The products attracted pension funds, advisors, and banks, shifting crypto from retail speculation to institutional portfolios alongside gold and Nasdaq holdings.

Bitcoin ETFs now hold over $150 billion in assets under management, representing 6% of the total supply, while Ethereum ETFs control 5.6% of the ETH supply.

The September approval of generic listing standards for commodity ETPs accelerates this shift by enabling faster approvals for additional crypto assets. It positions new fund filings for Solana, XRP, and other digital assets to follow.

The report identified this transition as “The Great Crypto Rotation,” where ownership shifts from retail speculators to long-term institutional allocators.

Traditional four-year cycle believers sell while institutions accumulate, resetting cost bases higher and establishing new price floors. ETFs now serve as primary buyers for Bitcoin and Ethereum, fundamentally altering supply conditions that historically drove cyclical patterns.

Stablecoin and DAT reshape

Stablecoins have evolved beyond serving as trading tools to encompass payments, lending, and treasury functions.

The report mentioned the $30 billion real-world asset market as a demonstration of this expansion, with tokenized treasuries, credit, and commodities creating on-chain financial infrastructure.

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Author: Gino Matos