Wintermute: RWA Could Become a New Liquidity Channel for the Crypto Bull Market

Wintermute stated that the crypto market has rebounded over the past two weeks, with positive ETF fund flows and stablecoin issuance stabilizing. However, the market still needs new funding channels to initiate a new cycle. Historically, VC investments, ICOs, stablecoins, ETFs, and digital asset treasury companies have accelerated the bull market process, and RWA may become the next important liquidity channel. Data shows that stablecoins have net issued over $120 billion in a year, ETFs have seen a cumulative net inflow of $63 billion, and digital asset treasury companies have increased their holdings by over $115 billion. In contrast, RWA has attracted about $16 billion in funding over the past 12 months, only one-tenth of the peak values of ETFs and treasury companies in the previous cycle. However, the value of on-chain tokenized assets has nearly doubled in a year, reaching over $30 billion, and continues to expand during the contraction of stablecoin supply. Wintermute believes that RWA funds will initially purchase traditional assets, such as Apple stocks and U.S. Treasury bond funds. Once on-chain, the friction of moving towards BTC, altcoins, and DeFi will decrease. As regulatory frameworks become clearer, tokenized government bonds and funds are accepted as collateral by trading platforms and DeFi, RWA may drive a market cycle that is slower in pace and longer in duration.

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