Wind is changing in the cryptocurrency universe, and funds cited in the Stock Market (ETF) are a new scenario in which this battle will be fought. Capital flows are spinning from Bitcoin ETF (BTC) towards Ether (ETH) and replicate the historical behavior of the digital asset market.
This move marks a possible start for AltSeason, When Bitcoin’s alternative cryptocurrencies become more prominent.
Turning its first year on the market, ETF recorded a $5,250 million ticket in July, with just 41 million tickets. In contrast, the Bitcoin ETF accumulates 139 million tickets, but has 1,135 million exits.
BTC funds attract more capital in absolute terms, but The percentage of output on the entry (9.96%) is significantly greater than the percentage of ETH (0,78%). This rotation into ETH reflects Ethereum’s persistent trust in cryptocurrency, which has attracted the attention of institutional investors.
In the graphics below, the capital’s flow was from BTC and ETF. The red bar represents a negative net capital flow (or outlet), and the green bar is a positive flow.
Ethereum facility heat
Etheric heat is not merely speculative. The institution is inspiring strongly. Over 1.8 million ETH is in the hands of businesses.
Companies such as Sharplink Gaming, BIT Digital and BTCS Inc. are seeking to issue corporate debt and increase their holdings to fund ETH purchases.
ETHC’s appeal against BTC is on staking; This allows these companies to generate additional revenue by participating in the Ethereum Network verification..
This trend suggests that the heat of the facility will stay with ether, and more and more Wall Street companies are exploring the assets as strategic preparations.
Impact on the ETF market
ETH’s direct corporate purchases and massive flows to Ethereum ETFs drive ether demand and raise prices. This is because these funds must purchase ether in the market to support financial products.
From July 1st to today, July 23rd Cryptocurrency rose 58% from $2,400 to $3.800 on MondayToday it’s $3,500.
Meanwhile, Bitcoin slows bullish rallying, but remains stable at around $118,000, with cryptocurrencies like ETH and XRP reporting weekly increases.
This change in focus Evidence that money is spinning towards alternative cryptocurrenciesa typical pattern of the alto season.
Phase 3 of the cryptocurrency cycle
As Cryptootics reports, the market has entered phase 3 of the cryptocurrency cycle. After Bitcoin’s initial impulse towards historic maximum (phase 1), investors sought a greater yield in ether (phase 2) and reduced the BTC domain.
now, Capital flows to other cryptomonts of great capitalization driven by ecological optimism.
According to the Blockchain Centre Index, 45% of the 50 major cryptocurrencies exceed Bitcoin performance. Although the technical threshold of 75% has not been reached to declare the Alt season, the transition signal is clear.
New ETFs on the horizon
Interest in cryptocurrency ETFs will not cease. Some requests for funds from other cryptocurrencies are in front of the Stock Exchange and Value Committee (seconds).
Bloomberg Intelligence analysts James Seifert and Eric Balknath estimate the 95% chance of approval for XRP ETF, Solana (SOL) and Litecoin (LTC) in the second half of 2025.
Cryptocurrencies like Dogecoin (Doge), Cardano (ADA), Polkadot (DOT), Hedera (HBAR), and Avalanche (Avax) have a 90% chance. This new wave of funds reflects an increasing diversification in the crypto-active market.
Despite enthusiasm, only the strongest cryptocurrencies are highlighted in this cycle. Capital turnover, institutional benefits and new funding requirements for ETFs refer to transition markets.
However, selectivity is important. Only strong foundations lead this stage and integrate the salience of cryptocurrency in an increasingly dynamic ecosystem.
