Institutional Dominance Reshapes Crypto Markets with Derivatives Growth

Wintermute's latest report on over-the-counter (OTC) crypto flows for the first half of 2026 reveals significant changes in the market's structure. The firm, a major liquidity provider in digital assets, attributes shifts in token concentration and derivatives growth to institutional dominance.

The data shows that institutional flows, often executed through OTC desks and structured products, continue to dominate crypto markets. Derivatives volumes have surged, doubling year-over-year in 2025, and this momentum persisted in 2026. According to Wintermute, institutions favor OTC transactions for precision and scale.

The rise of derivatives reflects a broader shift in how crypto is perceived by institutions. Execution has shifted toward OTC desks, contracts-for-difference (CFDs), and options, reducing reliance on retail-centric spot markets. This trend appears to have deepened in 2026, as institutions focus on established assets like BTC and ETH.