Institutions Surpass Retail Traders as Crypto Market Drivers

Institutional investors are increasingly driving the crypto market, accounting for a record 72% of spot trading volume on Wintermute's over-the-counter (OTC) desk in the first half of 2026. This marks a significant shift from retail traders, who have largely exited the market due to prolonged bearish conditions.

The absence of retail traders has given institutional investors more weight in shaping prices, with hedge funds, digital asset treasuries, asset managers, and family offices dominating spot trading volume on Wintermute's OTC desk. This trend is expected to continue, as institutions remain patient and selective in their token choices.

Wintermute notes that the increase in institutional activity is directly tied to falling volatility, with Bitcoin's realized volatility decreasing from 70% to 45%. This reduced volatility has allowed institutional investors to sit through price swings, rather than chasing them, which helps explain the drop in volatility.