Bitcoin's Four-Year Cycle Disrupted by Institutional Adoption and RWA Expansion

Citing PANews, the cryptocurrency industry is breaking the traditional four-year cycle pattern, driven by institutional adoption of ETFs, tokenization of real-world assets (RWA), and the evolution of stablecoin infrastructure. Analyst Ignas noted that the 2024 launch of Bitcoin and Ethereum ETFs marked a turning point, with $34 billion in net inflows since April. These products have attracted pension funds, advisory firms, and commercial banks, transforming crypto into an institutional asset class. Bitcoin ETFs now manage over $150 billion, representing 6% of BTC supply, while Ethereum ETFs control 5.6% of ETH. The SEC’s September approval of a universal ETP listing standard has paved the way for Solana and XRP. The report terms the shift from retail to institutional ownership as the 'crypto asset rotation.' Meanwhile, stablecoins are expanding beyond trading into payments, lending, and fiscal management, with a $30 billion RWA market building on-chain financial infrastructure. The CFTC’s recent approval of stablecoins as derivatives collateral has opened new institutional use cases. Projects like Stripe’s Tempo and Tether’s Plasma are integrating stablecoins into the real economy, while DAT companies offer equity market access for tokens not yet approved for ETFs. RWA tokenization is establishing real capital markets on-chain, with BlackRock’s BUIDL and Franklin Templeton’s BENJI acting as bridges to traditional capital. This structural shift suggests crypto is evolving from a cyclical speculative asset to a permanent financial infrastructure.