The institutionalization of Bitcoin has become an irreversible trend, which is quite similar to the historical development path of gold ETFs. In this rapidly changing Crypto Assets market, data is the most intuitive evidence, but the market always favors those investors who remain vigilant.

According to the latest on-chain data analysis, institutional investors are gradually taking control of the Bitcoin market. As of the first quarter of 2025, traceable Bitcoins held by exchanges, custodians, and listed companies accounted for 82% of the circulating supply. Including ETF holdings, the number of Bitcoins actually controlled by major institutions is close to 90%. This data does not include approximately 3.7 million Bitcoins believed to be lost; if this portion is accounted for, the proportion controlled by institutions would be even higher.

At the same time, the altcoin market is undergoing a large-scale cleansing. This phenomenon is inevitable during the maturation process of the market, similar to the aftermath of the internet bubble burst in 2000, where only a few companies like Amazon survived. Data shows that out of the 24,000 tokens listed between 2017 and 2020, 94% have either gone to zero or are close to zero. Among the 19,416 tokens born during the bull market in 2021, as of July 2025, 87% have been delisted or have run out of liquidity.

However, the market landscape is not static. If the U.S. approves spot altcoin ETFs, especially Ethereum ETFs, it could change the current situation. In addition, emerging markets such as Africa, as well as grassroots users, are still creating new opportunities.

For ordinary investors, the opportunity window in the Crypto Assets market is gradually shrinking. The large-scale entry of institutional funds, coupled with increasing regulatory pressure, has made the market environment more complex. The U.S. Securities and Exchange Commission (SEC) has filed lawsuits against 68 tokens, further increasing the survival pressure on altcoins.

In such a market environment, investors need to be more cautious. For those investors who are still interested in altcoins, it is recommended to only consider projects that have undergone at least three rounds of bull and bear cycle validation. At the same time, it is also important to closely monitor emerging markets and innovative applications, as they may bring unexpected opportunities.

Overall, the Crypto Assets market is undergoing a significant turning point. The impact of the institutionalization trend will be profound and lasting, and investors need to adjust their strategies to adapt to this new market landscape.