Institutional Crypto Trading Hits Record 72% as Wall Street Dominates Market

Institutional crypto trading has reached an all-time high of 72% as Wall Street's influence on the market grows. According to a recent report by Wintermute, institutions accounted for roughly 72% of spot trading volume on its OTC desk during the first half of 2026, surpassing the previous record.

This shift in market dynamics is attributed to institutional investors' longer-term focus and defined mandates, which result in lower volatility and liquidity concentrated in a smaller group of assets. Realized volatility has fallen from around 70% in earlier market cycles to approximately 45% in the current one.

The report also notes that institutions tend to trade a narrower universe of tokens, while retail investors continue to spread their activity across a broader range of assets. This concentration could lead to more selective altcoin rallies and make broad-based rallies less likely.