Altcoins Take the Lead – Why We Rotated Into ETH and Stayed Nimble

Asset	Positioning Transition	11 July Price	Weekly High	1 8 July Price	Change	Verdict
BTC	60% → 68% → 55%	$117,700	$1 22,761	$119,670	+1.67%	✅ Stayed exposed, trimmed at strength
ETH	10% → 12% → 27%	$2,975	$3,625	$3,625	+21.9%	✅ Early overweight captured breakout
SOL	5% → 5% → 8%	$1 64	$182.7	$182.7	+11.4%	✅ High beta exposure timed well

✅ What We Got Right

➕ Quickly Rebuilt Exposure as Momentum Returned
After locking in early profits, we aggressively rotated back into altcoins when strength re-emerged—capturing the majority of Ethereum and Solana’s breakout performance in the second half of the week.

➕ Maintaining BTC Core Anchor Until ATH Hit
We held a dominant Bitcoin position through its new all-time highs, benefiting from sustained institutional inflows and momentum before trimming to rotate into higher-beta assets.

➕ Managed Volatility with Strategic Cash Buffer
A consistent 10% cash allocation allowed us to de-risk at key points of overheating while preserving flexibility to re-enter once the rally reaccelerated.

❌ What We Got Wrong

❌ Took Profits Too Early on Altcoins
We began trimming exposure as early momentum faded—missing part of the second wave of gains, particularly in ETH and SOL.

❌ Overweighted Solana Prematurely
We added to SOL too early in the week, before ETF outflows and relative underperformance became more apparent—dampening short-term returns despite the broader altcoin rally.

? Key Lessons

? ETH Is Now the Market’s Leading Indicator
From open interest to ETF flows and corporate treasury adoption, Ethereum is now driving cycle leadership. Watch it as the new barometer.

? Legislation + Leverage = Momentum
U.S. crypto bills passing and ETH derivatives surging created the perfect storm for altcoin strength—one that justified rotation and high beta exposure.

? Rotation Beats HODLing in Fast Cycles
By trimming BTC at strength and reallocating to ETH and SOL, we stayed ahead of market shifts. Active rebalancing again proved more effective than passive holding.

? Final Takeaway

Ethereum’s breakout, legislative clarity, and institutional flow alignment drove altcoin leadership this week. We captured the upside by rotating early into ETH and maintaining strategic flexibility.

We now monitor:
• BTC’s ability to hold above $120K
• Sustainability of ETH inflows and leverage
• Macro catalysts that could shake overheated markets

We remain overweight ETH and SOL, anchored by BTC, and stay agile with a 10% cash pocket as altseason heats up.

Understanding Our Benchmark and Positioning Terms

Our benchmark is a market-cap weighted index composed of Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) — the three most widely held and institutionally tracked assets in the space. Weightings are determined based on each asset’s relative market capitalization at the start of the review period.

When we refer to “neutral weight,” we mean a position aligned with the benchmark weight. An “overweight” position indicates we hold a larger allocation to that asset than its benchmark weight, reflecting higher conviction or expected outperformance. Conversely, an “underweight” position means our allocation is below the benchmark weight, typically due to near-term risks or weaker conviction.