Institutions Dominate Crypto Markets with 72% of Spot Flow
Wintermute's data shows that institutional investors now account for 72% of spot flow in crypto markets, up from 59% a year ago. This shift has led to changes in trading habits, with institutions focusing on fewer assets and using derivatives to manage risk.
The number of unique tokens traded by institutional counterparties increased by just 24% between the first half of 2024 and the first half of 2026, while retail traders saw a 76% expansion during the same period. This concentration of liquidity in fewer assets has led to lower volatility, with Bitcoin's realized volatility dropping from near 70% in 2025 to about 45% now.
As institutions drive crypto markets, they are using options strategies to generate yield and reduce exposure to individual tokens. This has created a market where extreme price swings associated with retail trading are less common.