Institutions Dominate Crypto Market, Concentrating Liquidity in Fewer Tokens

Wintermute's first half of 2026 OTC report reveals that institutional investors made up 72% of its spot crypto flow, a significant increase from 59% in the same period last year.

This shift towards institutional involvement has led to a change in how liquidity is distributed across the market, with institutions concentrating on fewer tokens and using derivatives to generate yield.

The report notes that between the first half of 2024 and the first half of 2026, the number of unique tokens traded by institutional counterparties increased by just 24%, while among retail traders it expanded 76% during the same period.

As a result, liquidity is increasingly concentrated in fewer assets, with institutions also moving more exposure into derivatives. The report cites an example where altcoin options notional volume on Wintermute's desk grew 3.4 times between the second half of 2025 and the first half of 2026.