Trading firm QCP Capital released a report signaling the start of the long-awaited altcoin season. The Altcoin Season Index crossed the 50 mark according to major sources, reaching its highest level since last December.
Altcoin Season Index. Source: CoinMarketCap
Institutional Investors Lead the Charge
Total open interest in perpetual Ethereum futures soared from $18 billion to $28 billion in just one week. Traditionally, retail investors have followed momentum, but QCP Capital analysts note that institutional players have taken the lead in the current cycle.
The catalyst was the GENIUS Act, signed on July 18. This legislation introduces a clear regulatory framework for stablecoins. As a result, Ethereum and other Tier 1 blockchains hosting stablecoins have attracted increased attention from corporate treasuries.
These companies see Ethereum, Solana, XRP, and Cardano as potential Bitcoin analogs for their reserves. They are seeking to replicate the strategies of companies such as Strategy and Metaplanet, but with a focus on alternative cryptocurrencies.
Ethereum ETFs Gain Momentum
The narrative could gain further traction if the U.S. Securities and Exchange Commission approves applications to launch Ethereum spot ETFs with staking in the coming months. This approval could prompt institutional investors to rotate resources out of Bitcoin ETFs in favor of Ethereum, attracted by the prospect of higher yields.
Last week, capital inflows into spot Ethereum ETFs outperformed investments in similar Bitcoin funds for two consecutive days. Analysts interpret this as a signal of BlackRock’s confidence in the approval of the staking ETF and the exponential growth of institutional interest in Ethereum.
Options Strategies Point to Bullish Sentiment
The options market is also showing optimism. Risk reversals on Ethereum indicate demand for calls at all expiration dates, and traders are opening large bullish positions.
QCP Capital highlights two key strategies:
- Call Spread for September 2025:
This strategy involves purchasing a call option with a strike price of $3,400 and simultaneously selling a call with a $3,800 strike, both expiring on September 26, 2025. The trader profits if Ethereum’s price is between these levels at expiration, with maximum profit limited to the difference between strike prices. - Call Spread for December 2025:
A similar position involves buying a call at $3,500 and selling a call at $4,500, both expiring on December 26, 2025. This strategy targets a larger potential rise in Ethereum’s price by year-end.
Both strategies limit potential gains and losses, making them attractive to institutional investors seeking controlled risk.
Shift in Market Leadership
Bitcoin’s dominance dropped from 64% to 60% over the past week, as the leading cryptocurrency has struggled to break above the $121,000 level. At the same time, Ethereum’s market share rose from 9.7% to 11.6%.
Bitcoin’s dominance in the past 3 months.
QCP Capital analysts believe that if the trend continues, altcoin season will continue to gain momentum. The firm is monitoring market signals and promises to provide up-to-date analytics promptly.
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Source:: Altcoin Momentum Surges as Institutions Drive Ethereum and Crypto Market Shifts