Institutions Dominate Crypto Trading as Wall Street Takes the Lead

The cryptocurrency market has undergone significant changes in recent months, with Wall Street firms and professional investors now accounting for the majority of trading volume. According to a report by Wintermute, a major crypto market maker, institutions made up around 72% of spot trading volume on its over-the-counter desk during the first half of 2026, a significant jump from about 61% in the second half of last year.

The shift towards institutional investors has resulted in lower volatility, with realized volatility falling to around 45% compared to roughly 70% in earlier market cycles. This is because professional investors tend to hold positions longer and operate under defined risk limits, rather than chasing short-term price moves.

Wintermute's report also notes that retail investors have largely moved to the sidelines, with their activity concentrated in a smaller group of tokens. The firm expects retail participation to return during the next crypto bull market, but argues that institutional influence is unlikely to fade.