Advisors’ Guide To Today’s Crypto Market Cycle
What's New? What's Different? And What Matters?
The Crypto Advisor is your trusted resource for navigating the world of cryptocurrency. Each week, we deliver a clear and concise update on the latest developments in crypto, straight to your inbox. This is more than just a newsletter; it’s an essential resource for forward-thinking advisors focused on maintaining a competitive edge. We’re excited to support your journey in adapting to and thriving in the new age of financial services.
Advisors’ Guide To Today’s Crypto Market Cycle
Crypto investors often take pride in highlighting their longevity in the space – an understated way of signaling they purchased Bitcoin at $50,000, $15,000, or even $1,500. The cycles survived are worn like badges of honor, and it’s often assumed that time in the market automatically translates to knowledge and success today.
That assumption no longer holds.
Many longtime investors believe they’ve developed “callused hands,” hardened by years of volatility. But even seasoned hands can struggle when tools, techniques, and trends that once worked no longer apply. This cycle is different: experience alone hasn’t guaranteed success. Rather than discouraging, it signals a reset – an opportunity for those willing to master an entirely new set of dynamics.
Bitcoin Got the Ball Rolling
From late 2022 through mid-2025, Bitcoin wasn’t just the leader – it dominated. Its market share climbed to a cycle high of 65%, leaving only 35% for every other coin. At the peak, Ethereum’s share was just 8.7%, while Solana, the breakout of this cycle, held under 3%. For more than two years, the idea that any other asset could rival Bitcoin was off the table.
Conventional wisdom suggested Bitcoin’s dominance would eventually fade, as in past cycles, but this time it held far longer than expected. Altcoins had brief moments of momentum, but nearly all underperformed Bitcoin, and very few have ever outperformed across cycles. Investors who tried to front-run the behavior of prior cycles by chasing altcoins were left trailing Bitcoin’s steady rise.
Bitcoin and Ethereum Are Now Wall Street’s Focus
The real shift this cycle is Wall Street’s embrace of crypto products. Even Trump Media & Technology Group is seeking to launch a Bitcoin ETF under its Truth.Fi brand – a sign of how mainstream adoption has become.
Spot Bitcoin ETFs have already attracted $54.5 billion in cumulative net inflows and grown to $144 billion in assets in just 18 months. For context, many experts once predicted only $1–10 billion in year one. The reality: $36 billion.
Ethereum ETFs, expected to face a tougher climb, have also surprised to the upside. In just a year, they’ve attracted $12.7 billion in inflows and now hold $27.64 billion in assets. In recent months, ETH ETFs have even outpaced Bitcoin ETFs in new inflows – remarkable given Bitcoin’s market cap is four times larger.
The success of these ETFs comes down to simplicity, reliability, and accessibility. Today, investors can choose from spot assets, wrapped tokens, ETFs, futures ETFs, Bitcoin-gold ETFs, leveraged products, downside-protection ETFs, mining stocks, digital asset treasury companies, indexes, and more. For the first time, both newcomers and seasoned investors can tailor Bitcoin and Ethereum exposure to their goals and risk profiles.
Capitol Hill Is Listening
The surge in digital assets hasn’t gone unnoticed in Washington.
President Trump’s administration appointed pro-industry figures such as David Sacks, Scott Bessent, Paul Atkins, and Howard Lutnick. Two executive orders pushed regulators to coordinate across agencies and established a framework for a U.S. digital asset reserve.
The SEC is currently reviewing nearly 100 crypto ETP applications and has issued statements on tokenization, stablecoins, DeFi protocols, custody, market manipulation, and investor protection.
Congress passed the GENIUS Act, establishing a clear regulatory framework for digital assets, clarifying agency oversight, and setting rules for tokens, exchanges, and stablecoins to strengthen U.S. leadership.
And just two weeks ago, the CFTC clarified that Americans may participate on outside platforms, signaling its intent to open U.S. markets to global activity.
Tokenization Is Next
Tokenization is no longer theory – it’s here, and it’s set to transform the industry. Each cycle has been defined by new innovation: Bitcoin for payments in 2011–2013, Ethereum and smart contracts in 2015–2016, DeFi from 2018–2020, and NFTs from 2020–2021. Now, tokenization represents the next leap, bringing real-world assets, financial instruments, and on-chain innovation together.
Coinbase has been preparing for months, signaling its “Everything Exchange” strategy. Its first product, launching September 22, will offer U.S. futures contracts providing simultaneous exposure to leading technology stocks and cryptocurrencies.
Robinhood is also making a major push. At its Cannes event Robinhood Presents: To Catch a Token, the firm unveiled products targeting 400 million users across 30 EU and EEA countries, including stock and ETF tokens. These moves reflect a broader push to make investing simpler and more accessible on a global scale.
On the network side, platforms are pushing tokenized equity. Ondo Global Markets is making U.S. stocks and ETFs accessible internationally, with over 100 stocks coming to its network and Ethereum emerging as the standard. Recent CFTC signals suggest investors will soon choose how and where to access these securities.
Solana is also breaking ground, partnering with Galaxy Digital and Superstate to launch SEC-registered Class A stock on-chain. These shares carry full rights, update in real time, and are gaining early traction – a clear example of how Solana combines crypto efficiency with regulatory protections.
The pace of development is unprecedented. Exchanges and platforms are driving innovation, while Ethereum and Solana are redefining how investors access tokenized securities.
Why This Cycle Is Different
As bold as it may sound, this time is different. Not because prices are guaranteed to rise, but because Wall Street is fully engaged, regulators are listening, and new capital is entering the market. Infrastructure is maturing, institutional frameworks are being built, and advisors now have the tools to guide clients with a level of sophistication never before possible in crypto.
There’s no playbook from past cycles to lean on. Advisors must decide – adapt now, or risk missing one of the most significant financial transformations of our time.
Public Companies Now Hold Over 1M Bitcoin
While ETFs currently lead in Bitcoin holdings, it seems inevitable that governments will eventually emerge as the largest owners. Public company allocations, by comparison, remain concentrated in a single player - Strategy - underscoring just how limited corporate adoption has been. What has truly surprised the market, however, is the rise of ETFs; five years ago, few would have predicted they would outpace corporations in embracing Bitcoin, yet today they dominate while many of the largest companies remain on the sidelines. The one factor that could alter this trajectory is if mega-cap firms such as Apple, Amazon, Meta, or Google decide to add Bitcoin to their balance sheets - an inflection point that could redefine the hierarchy of institutional holders.
Here’s the breakdown of who owns what:
ETFs - 1.472M BTC
Public Companies - 1M BTC
Governments - 526K BTC
Private Companies - 300K BTC
The Rest - 400K BTC
The Queue Builds: Almost 100 Crypto ETFs Awaiting Approval
There are currently 92 active applications for U.S.-listed cryptocurrency ETFs pending with the SEC. While Bitcoin and Ethereum products were approved last year, asset managers are now seeking to expand offerings to other tokens, ranging from large-cap names like Solana, XRP, and Litecoin to smaller projects such as Dogecoin, Cardano, and meme tokens.
The SEC has delayed several decisions this year but faces final deadlines on at least a dozen applications in October. Approval odds are viewed as high - 95% for Solana, XRP, and Litecoin, and 90% for other major altcoins - making it increasingly likely that a fresh wave of crypto ETFs will come to market in the months ahead.
Not all of these products are expected to succeed, though. Only a handful of digital assets are large and mature enough to support sustained ETF inflows, meaning many smaller-coin ETFs could struggle to gain traction or ultimately shut down. Still, the sheer volume of applications underscores how deeply crypto is becoming integrated into traditional financial infrastructure, with ETFs emerging as the most accessible entry point for mainstream investors.
Robinhood’s S&P Entry Reflects Broader Institutional Appetite for Digital Assets
Shares of Robinhood (HOOD) jumped 7% in after-hours trading after the retail brokerage, which has a strong focus on digital assets, was added to the S&P 500, effective September 22. The stock has surged over 150% year-to-date, reflecting growing investor enthusiasm for crypto-focused companies as digital assets continue to gain mainstream legitimacy.
Robinhood reported stronger-than-expected Q2 results, with $989 million in total revenue - up 45% year-over-year - and $386 million in profits, well above analyst forecasts. While crypto trading revenue fell from $252 million in Q1 to $160 million, transaction-based revenues from options and equities rose, highlighting the firm’s evolving business model and the maturing market for digital assets.
The S&P inclusion underscores the growing prominence of crypto-native and crypto-focused firms, joining peers like Coinbase, and signals that institutional and retail investors are increasingly viewing digital assets as a serious component of diversified portfolios.
Do Your Clients Want to Stake ETH? They’ll Have to Wait
The Ethereum validator queue is essentially a waiting list for participants who want to run a validator on the Ethereum network. Validators are responsible for processing transactions, securing the network, and earning rewards by “staking” ETH. To become a validator, an individual or institution must deposit a minimum of 32 ETH into Ethereum’s staking contract.
Because the network limits how quickly new validators can join, anyone who deposits ETH when the network is already at capacity enters the validator queue. Participants in the queue must wait their turn before they can start validating and earning rewards. Similarly, when validators want to exit and withdraw their staked ETH, they may also enter a queue to prevent too many withdrawals at once, helping maintain network stability.
Here’s a snapshot from our favorite tool for tracking how long it takes to enter or exit Ethereum staking as a validator.
As of now, both the entrance and exit queues are elevated, with the exit queue at an all-time high and the entrance queue at its highest level since September 2023.
We believe this is primarily driven by increased network activity, including digital asset treasury (DAT) companies buying ETH - both privately and publicly - and staking their new holdings. In short, the validator queue is a tool Ethereum uses to smoothly manage the onboarding and offboarding of validators, ensuring the network remains secure and resilient while allowing investors to participate in staking.
Disclaimer: The information provided by The Crypto Advisor is for educational and informational purposes only and does not constitute financial, investment, or legal advice. The Crypto Advisor is not a registered investment advisor, broker-dealer, or financial planner. Nothing in this email should be interpreted as a recommendation to buy, sell, or hold any financial instrument or investment. Always consult with a licensed financial professional before making any investment decisions.