Institutions Dominate Crypto Markets as Volatility Drops to 45%

Institutional investors are increasingly dominating the crypto market, according to a recent report by Wintermute. The firm found that institutions accounted for roughly 72% of spot trading volume on its over-the-counter (OTC) desk during the first half of 2026, marking a sharp increase from about 61% in the second half of last year.

This shift is significant because institutional investors tend to operate under defined mandates and risk limits, holding positions over longer periods. As a result, the market has seen lower volatility and liquidity concentrated in a smaller group of assets.

The report also noted that real realized volatility has fallen from around 70% in earlier market cycles to about 45% in the current one. Additionally, institutional investors are trading a relatively narrow universe of tokens, while retail investors continue to spread activity across a much larger number of assets.