Institutions Dominate Crypto Trading with 72% Spot Flow Share
Wintermute's recent report highlights the growing influence of institutional investors in the crypto market. In the first half of 2026, institutions accounted for 72% of spot OTC flow on Wintermute's desk, up from 59% a year ago.
This shift is changing the dynamics of crypto trading, with institutions focusing on a smaller group of tokens and increasingly using derivatives to generate yield. 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, compared to 76% among retail traders.
As a result, liquidity is becoming increasingly concentrated in fewer assets. Wintermute's data shows that altcoin options notional volume on its desk grew 3.4 times between the second half of 2025 and the first half of 2026, driven by institutional investors using options strategies to generate yield.
The report also notes that institutional participation is linked to lower volatility in crypto markets. Bitcoin's realized volatility dropped from near 70% in 2025 to about 45% now, a trend attributed to the growing influence of patient institutional investors.