The Real Fund for the Next Bull Market: Where It Will Come From and How to Enter

Bitcoin fell from $126,000 to $90.69K—a 28.3% surge in just a short period. But as the market enters a deleveraging and panic selling phase, there is a deeper question that needs answering: What is the goal of the next bull market, and where will the money really come from to support it?

Our understanding must evolve. The previous bull cycle was driven by retail speculation and aggressive leverage. The next one can no longer rely solely on these—it requires deeper, more stable, and larger sources of capital.

Why the DAT Model Is Insufficient for the Future

First, we should focus on Digital Asset Treasury (DAT) companies—publicly quoted firms that buy crypto assets through stock issuance and debt financing. The core mechanism is simple: when their stock price exceeds the net asset value (NAV) of their digital holdings, they can issue shares at a premium and buy crypto at lower prices, creating a “capital flywheel” that amplifies buying power.

However, this model has a critical vulnerability. The entire system depends on stock premium—the market’s willingness to pay above intrinsic value. When risk sentiment shifts, especially if Bitcoin drops, this premium quickly turns into a discount. When that happens, DAT companies’ ability to issue new shares slows or halts, and selling pressure intensifies, further weakening an already fragile market.

On a scale analysis, by September 2025, over 200 DAT companies are expected to coordinate, holding a combined digital asset portfolio of over $115 billion. But that still accounts for less than 5% of the total crypto market capitalization. The math is simple: the buying capacity of this sector is insufficient to sustain a comprehensive bull cycle. Even more alarming, during market stress, DAT entities may need to sell holdings to maintain operational liquidity, adding more selling pressure to an already weakened market.

The conclusion is startling: Retail investor money and corporate treasury strategies are no longer enough as a foundation for the next phase of adoption.

The Three Pipelines of Institutional Capital: The Real Money

If DAT alone isn’t enough, where is the big money really coming from? Three emerging channels answer this question.

Pipeline 1: Institutional ETF Penetration and Custody Infrastructure Maturation

Global institutional capital has chosen exchange-traded funds (ETF) as the preferred vehicle for crypto allocation. After the US spot Bitcoin ETF approval in January 2024, Hong Kong followed suit, approving spot Bitcoin and Ethereum ETFs. This convergence in regulatory frameworks has established ETFs as a standardized deployment channel for international capital.

But ETFs are not the whole story. Institutional investors have shifted from asking “Can I invest?” to a more practical “How can I invest safely, efficiently, and compliantly?”

Custody infrastructure has become a critical bottleneck now being addressed. Global custodians like BNY Mellon are deploying enterprise-grade digital asset safekeeping. Middleware platforms such as BridgePort are integrating settlement infrastructure that allows institutions to allocate capital without pre-funding accounts. This efficiency gain is crucial—it means institutions can deploy capital faster and more cost-effectively.

The biggest upside potential lies with pension funds and sovereign wealth funds. Investor Bill Miller forecasts that within 3-5 years, financial advisors will start recommending 1%-3% Bitcoin allocations in portfolios. While that percentage seems small, for the trillions of assets under management in the institutional sector, a 1%-3% allocation could translate into a multi-trillion dollar inflow.

Precedents are emerging: Indiana has proposed legislation to allow state pension funds to invest in crypto ETFs. UAE sovereign wealth investors have partnered with 3iQ to launch a $100 million hedge fund targeting 12%-15% annualized returns.

This differs from the DAT model because institutional allocation cycles have predictability and a long-term horizon. It’s not volatile, speculative inflow—it’s calculated, gradual, and strategic capital deployment.

Pipeline 2: RWA Tokenization—The $4-30 Trillion Bridge

Real-world asset (RWA) tokenization could be a game-changer. Do you know what RWA is? It’s the digital representation of traditional assets—bonds, real estate, valuable artworks, commodities—on the blockchain as tradeable tokens.

The current market scale is $30.91 billion (September 2025), but projections are astronomical. Industry reports suggest the 2030 RWA market could reach $4-30 trillion, a 50x+ growth multiple vastly larger than any current crypto-native capital pool.

What is RWA’s purpose in the ecosystem? It creates a language bridge between traditional finance and decentralized systems. When US Treasury bonds or corporate debt are tokenized on the blockchain, traditional and crypto players can speak the same language about the same assets. The result: stable, yield-bearing assets entering DeFi, reducing volatility, and offering a non-crypto-native yield source for institutional money.

Protocols like MakerDAO and Ondo Finance are early test cases. By onboarding tokenized US treasuries, MakerDAO has become one of the largest DeFi protocols by total value locked, supported by billions in traditional assets backing the DAI stablecoin. This demonstrates that when compliant, traditional asset-backed yields are available, institutional finance actively allocates.

The RWA pipeline delivers not just liquidity but legitimacy. It’s a direct link to global balance sheets and macroeconomic flows.

Pipeline 3: Infrastructure Scaling for Institutional Flows

Wherever capital comes from, execution requires efficient infrastructure.

Layer 2 scaling solutions process transactions off the Ethereum mainnet, reducing gas fees and increasing confirmation speed. Platforms like dYdX enable high-frequency order creation and cancellation impossible on Layer 1. This scalability is essential for high-volume institutional flows.

Even more critical is the stablecoin ecosystem. According to TRM Labs data, on-chain stablecoin transaction volume reached $4 trillion by August 2025, up 83% year-over-year. About 30% of all on-chain transactions are stablecoin-based. In just the first half of 2025, total stablecoin market cap hit $166 billion, becoming the backbone of cross-border settlement.

Adoption is globally concrete: over 43% of B2B cross-border payments in Southeast Asia now use stablecoins. As regulators like the Hong Kong Monetary Authority enforce 100% reserve requirements for stablecoin issuers, this strengthens stablecoins as compliant, institutional-grade on-chain cash, ensuring efficient, low-cost settlement for large fund transfers.

Policy Tailwinds: QT Ending and Regulatory Shift

These three pipelines do not exist in a vacuum—they align with broader policy shifts.

On December 1, 2025, quantitative tightening (QT) by the Federal Reserve ends—a turning point signaling the removal of structural liquidity drain from markets. Even more important are the incoming rate cuts. According to CME FedWatch data, there’s an 87.3% probability the Fed will cut rates by 25 basis points in December. The 2020 parallel: the Fed’s rate cuts and QE propelled Bitcoin from ~$7,000 to ~$29,000 within a year.

On the regulatory front, SEC Chair Paul Atkins announced an “Innovation Exemption” rule launching in January 2026. Its goal is to streamline compliance, enabling crypto companies to launch products faster within regulatory sandboxes. The new framework will update token classification and may include a “sunset clause”—once sufficient decentralization is achieved, securities designation could be dropped.

But the biggest shift is in regulatory posture. In 2026, crypto moves from an independent threat to a mainstream regulatory theme—lumped with data protection and privacy discussions. It signals a “de-risking” process—normalizing digital assets within corporate and institutional frameworks.

The Timeline: How and When Will the Money Enter

Short-term recovery depends on policy implementation. If QT ends, rates are cut, and the SEC’s innovation exemption is implemented, a policy-driven rebound could occur by late 2025 to Q1 2026. But this remains a volatile, speculative inflow—driven mainly by psychological factors.

A more sustainable phase begins in 2026-2027, as global ETF infrastructure and custody standards mature. This is when large institutional allocations—pension funds, sovereign funds, family offices—can deploy capital. These funds tend to have high patience and low leverage, providing a stable foundation unlike retail flows.

Long-term structural change hinges on the 2027-2030 RWA explosion. When tokenized traditional assets become standard on blockchain, DeFi TVL could reach trillion-dollar levels, driven by actual economic value flows—not just speculation.

The New Market Dynamics

This transition is not just “more money.” It’s a fundamental shift in market character. The previous bull market relied on retail attention and leverage. The next will rest on institutional trust and infrastructure maturity.

The question is no longer “Can I invest in crypto?” but “How can I invest safely, compliantly, and efficiently?”

Money will not move overnight. But the pipelines are already forming. Over the next 3-5 years, the gradual opening of these channels—institutional allocations, RWA integration, infrastructure upgrades—will define the next epoch of the crypto market. It’s an evolution from speculation to infrastructure, and the maturity needed for the asset class to truly go mainstream.