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- Institutional ETH holdings jumped 138% YoY, far outpacing Bitcoin’s 36%.
- Analysts see early signs of an altcoin rotation led by Ethereum.
- Market patterns suggest 2025 could mirror past post-Bitcoin alt rallies.
Ethereum is taking center stage again. Over the past year, institutional holdings of ETH have jumped 138%, reaching roughly 6.8 million ETH — nearly four times Bitcoin’s growth rate. The surge is powered by rising demand for Ethereum spot ETFs, staking yields, and its expanding use in DeFi and tokenization.
While Bitcoin remains the market’s reserve asset, fund holdings have only grown 36% year-over-year to about 1.3 million BTC. That’s a healthy increase but nowhere near Ethereum’s institutional momentum. The data suggests big money is repositioning — still holding Bitcoin, but leaning harder into ETH for higher potential returns.
The Market Shifts Toward Altcoins
According to Alphractal CEO Joao Wedson, the current setup mirrors past cycles when Bitcoin peaked before capital rotated into altcoins. Only four out of 55 major altcoins have outperformed BTC in the last 60 days — a narrow field that often signals the start of an accumulation phase.
Altcoins Season Index shows the strongest momentum for BTC!
— Joao Wedson (@joao_wedson) October 27, 2025
However, I see it as strategic to start accumulating altcoins now, anticipating the upcoming rotation from BTC to Altcoins.
Focus mainly on newer altcoins — history keeps repeating itself!
Charts: @Alphractal pic.twitter.com/kE5Ve8PFVd
In previous cycles, this kind of consolidation preceded major altcoin rallies. As Bitcoin stabilizes, investors tend to diversify into tokens with higher upside. Early signs show projects like Synthetix (SNX) and Binance (BNB) already gaining ground.
The 2025 Altcoin Setup Is Taking Shape
Market charts comparing altcoins to Bitcoin reveal a familiar pattern seen in 2017 and 2021, where strong alt rallies followed BTC’s major peaks. This time, altcoins appear to be breaking out of a multi-year wedge, hinting that the next rotation could be underway.
Also Read: Ethereum Holds $3,700 Support as Bullish Momentum Builds Toward $4,500 Resistance
If history repeats, Ethereum’s breakout could be the signal that sparks a broader altcoin season — one driven not by hype, but by institutional capital and real-world utility.
Ethereum’s 138% surge in institutional holdings marks a turning point. Bitcoin still anchors the market, but the momentum is shifting. With Ethereum leading and altcoins showing early strength, 2025 could be the year the rotation truly begins.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
