Wintermute Report Flags Deceleration in Crypto’s 3 Key Liquidity Channels

Despite supportive global liquidity and easing central banks, Wintermute’s Jasper De Maere says crypto has entered a self-funded phase—where money now circulates internally instead of expanding the market.

ETF and DAT Growth Slow, Wintermute Warns of Internal Market Rotation

According to Wintermute, the algorithmic trading firm and crypto market maker, inflows through stablecoins, exchange-traded funds (ETFs), and digital asset treasuries (DATs) have slowed, even though the broader monetary backdrop remains accommodative. Stablecoins saw a reduction this week for the first time in several months.

Author and desk strategist Jasper De Maere explained that while adoption drives long-term trends, liquidity determines price direction—and right now, that liquidity is recycling rather than multiplying. Wintermute’s data shows all three liquidity channels—stablecoins, ETFs, and DATs—are plateauing after strong growth through late 2024 and early 2025.

Combined DAT and ETF holdings rose from roughly $40 billion to $270 billion, while stablecoins doubled from $140 billion to $290 billion before leveling off. De Maere noted that this slowdown signals fewer new funds entering the ecosystem, not just capital rotation.

Each channel reflects a different liquidity source, De Maere said: stablecoins show crypto-native sentiment, DATs track institutional yield appetite, and ETFs represent traditional finance allocations. With all three flattening, Wintermute argues the market is now internally driven, where liquidity moves between sectors instead of entering from outside.

Outside crypto, Wintermute highlights that global liquidity (M2) remains ample, but high SOFR rates continue to keep cash parked in Treasury bills. Even with the end of U.S. quantitative tightening, De Maere said macro liquidity is choosing equities over digital assets for now.

This internal liquidity cycle, according to De Maere, explains recent market behavior: rallies fizzle quickly, volatility spikes from liquidations, and price breadth narrows despite steady total assets under management. Wintermute adds that new capital—whether via fresh stablecoin minting, ETF creations, or DAT issuance—will be the signal that external liquidity is returning to crypto.

Until then, De Maere concludes, crypto remains in a “self-funded phase,” where capital is circulating, not compounding—a pattern familiar to anyone who’s seen liquidity dictate previous crypto cycles.

FAQ ❓

• **Who authored Wintermute’s report on crypto liquidity?**The analysis was written by Jasper De Maere, a researcher at the global trading firm Wintermute.
• **What does Wintermute identify as crypto’s three liquidity channels?**Stablecoins, exchange-traded funds (ETFs), and digital asset treasuries (DATs).
• **Why does Wintermute say inflows have slowed?**High SOFR rates and investor preference for equities are diverting liquidity away from crypto.
• **When could liquidity return to crypto markets?**According to De Maere, renewed stablecoin minting, ETF inflows, or DAT growth would mark the comeback of external capital.