On-chain Evening Digest: Whale Rebalances Allocations Frequently, Realigning Risk Exposure between Blue Chips and Altcoins

Whale activity is intensifying as large on-chain participants rebalance their allocations between blue-chip and altcoin positions. A major Bitcoin long whale is currently underwater, holding an unrealized loss of $2 million. Meanwhile, the whale's Solana position is up by $5.04 million, highlighting a strategic pivot toward altcoin exposure.

The second-largest on-chain ETH long whale is also facing a widening unrealized loss of $14.2 million, with average entry prices significantly below current market levels. These movements suggest a broader market reallocation as investors seek to capitalize on emerging opportunities in altcoins amid Bitcoin's short-term correction.

Standard Chartered is exploring the launch of a prime brokerage for crypto trading through its venture capital unit, SC Ventures. The initiative would allow the bank to offer institutional-grade crypto services without the full capital burden under Basel III rules, which require a 1,250% risk charge for Bitcoin and Ether on balance sheets.

Why Did This Happen?

The shift in whale positioning reflects broader investor sentiment toward altcoins, driven by recent ETF inflows and infrastructure developments. Solana ETFs, for instance, recorded $41.08 million in weekly inflows, marking a strong institutional interest.

The Solana network is also exploring privacy-focused applications through a hackathon offering $75,000 in rewards.

The growing institutional appetite for altcoins is evident as more global banks, including Morgan Stanley, file to launch Bitcoin and Solana ETFs. These products are expected to drive further demand and legitimization of altcoins among institutional investors.

How Did Markets Respond?

Webull reported a 133.33% earnings surprise in Q3 2025, with revenue rising 55% year-over-year to $156.9 million. The company's stock rose 4.01% in after-hours trading following the announcement. Key growth drivers included the reintroduction of crypto trading and the launch of its AI-powered Vega tool.

Antalpha Platform Holding Ltd also posted strong Q3 2025 results, with revenue up 62% year-over-year to $21.1 million. The company's tech financing fees on supply chain loans reached $15.6 million, up 51% year-over-year. Antalpha provided strong Q4 guidance of $26–$28 million in revenue, reflecting confidence in its U.S. market expansion and new product initiatives.

Sharps Technology and Coinbase Institutional launched the STSS Validator, an institutional-grade validator on the Solana network. This marks a strategic move from a treasury-only approach to active infrastructure participation, with STSS delegating over 2 million SOL to the validator. The partnership aims to strengthen Solana's security and decentralization while leveraging Coinbase's institutional-grade infrastructure.

What Are Analysts Watching Next?

Analysts are closely watching the regulatory developments shaping the crypto landscape. The U.S. Senate is set to hold hearings on the Digital Asset Market Clarity Act, which aims to position the U.S. as the global crypto capital. The bill's final wording is expected to be released this week.

In addition, global regulators are in talks to overhaul Basel III rules governing banks' exposure to cryptoassets. These changes could significantly impact how major financial institutions allocate capital to digital assets and influence the broader market structure.

Investors are also tracking the performance of newly launched DeFi products. BenPay DeFi Earn recently introduced four new yield opportunities, including Morpho USDC, Morpho USDT, Sky USD, and Ethena USDe. These products aim to provide more flexible and diversified on-chain growth options, addressing diverse risk appetites and liquidity needs.

As the market evolves, the balance between institutional participation and retail demand will play a key role in shaping the next phase of digital asset adoption. Analysts emphasize the importance of tracking inflow sustainability and global diversification beyond the U.S. market.