While cryptocurrency enthusiasts await a traditional ‘altcoin season’ characterized by surging prices in alternative tokens beyond Bitcoin (BTC), an expert argues that the phenomenon is already underway.
However, this time it’s not in digital assets but in publicly traded companies tied to the crypto ecosystem. This shift reflects growing institutional interest, spurred by regulatory approvals and enhanced accessibility, positioning crypto equities as the primary beneficiaries of fresh capital inflows.
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Institutional Capital Redefines Altcoin Season
Typically, major rallies in Bitcoin have been followed by gains in other cryptocurrencies as investors rotate capital. However, according to Alana Levin, a former Boston Consulting Group associate and investment partner at Variant,
In a detailed analysis, Levin explained that instead of capital rotating from Bitcoin into altcoins, institutional investors — now the main source of new capital — are directing funds into crypto-related equities.
With Bitcoin dominance high and institutions favoring regulated exposure, the ‘real’ alt season is happening in traditional markets, not in crypto tokens.
Levin highlighted several key developments that are causing this shift. These include the US Securities and Exchange Commission’s approval of spot Bitcoin and Ethereum exchange-traded funds (ETFs), the Nasdaq CEO’s advocacy for tokenizing equities, and the broader favorable environment for crypto, exemplified by initiatives such as the SEC’s ‘Project Crypto.’
Such milestones have legitimized crypto exposure for institutions, which prefer equities due to established operational frameworks for custody, compliance, and trading.
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Why CeFi Is Outperforming DeFi This Cycle
Performance data further backs up the argument. Levin drew attention to the notable gains of several crypto-related stocks in 2025:
- Year-to-date, Coinbase Global Inc. (COIN) is up 53%.
- Robinhood Markets Inc. (HOOD) has surged an impressive 299%.
- Galaxy Digital Holdings Ltd. (GLXY) has doubled, recording a 100% increase.
- Circle Internet Financial Ltd. (CRCL) has climbed 368% since its June IPO, or 75% from its first trading day’s close.
In contrast, Bitcoin has appreciated only 31%, Ethereum 35%, and Solana 21%. Extending the timeline to Bitcoin’s market bottom on December 17, 2022, reveals a similar pattern of outperformance by these equities.
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Bitcoin vs Crypto Stocks. Source: X/AlanaDLevinThe outperformance isn’t just about sentiment — it’s supported by hard fundamentals, according to Artemis CEO Jon Ma. Ma revealed that Coinbase reported around $1.5 billion in net income, while Robinhood posted $1.2 billion annualized in Q2 2025. Few blockchain projects can match these numbers.
The executive emphasized that most retail activity in the crypto space still happens on centralized platforms rather than decentralized ones.
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Crypto Stocks Echo the Classic Alt Season Playbook
Notably, Levin also observed that this equity boom mirrors historical alt seasons in several ways. She noted that only a handful of viable stocks tied to crypto are attracting capital, akin to early crypto cycles, when fewer than 100 tokens dominated.
The author also anticipates rotations within equities, such as from stablecoin issuers to exchanges or digital asset treasuries. This will again parallel token trends like shifts from DeFi to gaming or AI coins.
Both Levin and Ma converge on a single message: the center of gravity in the crypto market has shifted. As institutional investors pour billions into regulated vehicles, crypto equities have become the new frontier of speculation and growth.
While the next true altcoin rally may still be on the horizon, the current market dynamic shows that the alt season is already here — it just moved to Wall Street.
Source: https://beincrypto.com/institutional-altcoin-season-shifts-to-crypto-stocks/
