Why This Year’s Altcoin Season Is Happening on Wall Street, Not in Crypto Tokens

Core Insights - The traditional 'altcoin season' is shifting from cryptocurrencies to publicly traded companies linked to the crypto ecosystem, driven by increasing institutional interest and regulatory approvals [1][2][3] Group 1: Institutional Capital and Market Dynamics - Institutional investors are now the primary source of new capital in the crypto space, directing funds into crypto-related equities rather than altcoins [2][3] - Bitcoin dominance is currently at 58%, indicating a steady uptrend since November 2022, which raises questions about the traditional altcoin season [2][3] Group 2: Regulatory Developments and Market Legitimization - Key developments such as the SEC's approval of spot Bitcoin and Ethereum ETFs and advocacy for tokenizing equities by Nasdaq's CEO have legitimized crypto exposure for institutions [4] - The SEC's 'Project Crypto' and other favorable initiatives have created a conducive environment for institutional investment in crypto equities [4] Group 3: Institutional Preferences - Institutions prefer equities due to established operational frameworks for custody, compliance, and trading, which are more aligned with their mandates compared to direct investments in crypto tokens [5]