Interesting changes have emerged in institutional fund flows in 2025. Bitcoin's appeal is waning—outflows have plummeted by 35% year-over-year, totaling approximately $26.9 billion. Does this mean the altcoin season is coming? But the reality is far more complex.

Funds are indeed rotating, just not in the way you might think. The major flow is heading into Ethereum and Solana, which are considered the next steps by institutions. Calling them altcoins is a bit of a stretch—especially Ethereum, given its significant position in the crypto world. Solana's performance over the past two years has also proven its value. They belong to a different tier.

What about the actual altcoins? Things are not going well. The entire altcoin market has seen inflows shrink by about 30%.

So don’t be fooled by appearances. Institutions haven't shifted to altcoins; they are optimizing their investment portfolios. They are selecting projects with ample liquidity, reliable technology, and genuine scalability. This is completely different from the traditional "altcoin hype."