Wintermute Sees Real-World Assets as Next Bull Market Driver

Crypto market maker Wintermute has indicated that the capital inflow channels that have supported previous bull markets are approaching exhaustion. The firm is now focusing on real-world asset tokenization (RWA) as a new pillar to drive the next market cycle.

The crypto asset market has historically expanded by rotating through successive primary capital inflow channels, from ICOs and venture capital funding to stablecoins, spot Bitcoin ETFs, and corporate Bitcoin treasury strategies. However, this time around, ETF flows have turned to net outflows, many DAT stocks are trading below their net asset value, and stablecoin supply has recorded its sharpest decline since the Terra collapse.

The firm noted that 'the market is waiting for something new to trigger the next bull run,' arguing that price appreciation alone is insufficient to sustain an upward cycle. Wintermute's analysis suggests that a qualitatively different capital inflow channel is needed to lead the next cycle.