Institutions Dominate Crypto Spot Trading, Institutions Seek Yield Strategies

Wintermute's latest over-the-counter (OTC) flow report reveals that institutions have become the dominant force in crypto spot trading, accounting for a record 72% of spot OTC flow during the first half of 2026. This represents a significant increase from the previous year, when institutional clients generated 61% and 59% of spot flow in the second and first halves of 2025 respectively.

The report also shows that institutional token coverage rose by 24%, while retail clients expanded their traded universe by 76%. Moreover, altcoin options notional increased by a factor of 3.4, with institutions increasingly using derivatives for yield strategies rather than directional bets on price increases.

This concentration of capital among larger assets is further supported by recent exchange and market-cap data. Wintermute's findings suggest that institutional investors may treat many altcoin moves as short-term trading opportunities rather than the beginning of lasting portfolio allocations, resulting in liquidity concentrating in selected assets while the market's long tail becomes thinner.