Wintermute: New Channel Needed for Next Crypto Bull Cycle
Wintermute analysts believe that the recent resumption of capital inflows via ETFs and stablecoins could mark the end of the crypto market's sideways phase.
According to the firm, a new bull cycle will require a new channel for attracting capital, which it sees as Recurring Wall Street Assets (RWAs).
The analysts point out that previous bull cycles were accompanied by the emergence and scaling of new liquidity channels, including venture capital and ICOs in 2017-2018, stablecoins in 2020-2021, and spot ETFs and Digital Asset Treasuries (DAT) in 2024-2025.
Wintermute notes that RWAs are still at an early stage of development, with around $16 billion attracted over the past 12 months, roughly one-tenth of the volumes that ETFs and DAT posted in their best 12 months of the previous cycle.