03.08.2026 13:41
Institutional investors are now shaping crypto markets more than retail investors. Market maker Wintermute described this picture as a turning point in the development of digital assets.
According to the company's latest market report, institutional investors accounted for approximately 72 percent of spot trading volume on the over-the-counter trading desk in the first half of 2026. This share is the highest on record and a sharp increase from approximately 61 percent in the second half of the previous year. The report stated, "As crypto goes through a bear market, with the retail investor largely absent from the scene and focused on equities, it is easier to see the underlying structure. Whatever the recent price movements say, this asset class is maturing."
Institutional investors act within defined mandates and risk limits rather than chasing short-term price fluctuations. These investors also hold positions for longer periods. According to the report, the result is a market where volatility has declined and liquidity is concentrated in a smaller group of assets. According to the company's analysis, realized volatility has fallen to around 45 percent in the current cycle from approximately 70 percent in previous market cycles. The report also revealed that institutional investors trade in a relatively narrow token universe, while retail investors continue to spread their activities across a much broader group of assets.
ALTCOIN RALLIES MAY BECOME MORE SELECTIVE
This concentration could make future altcoin rallies more selective. The report assessed, "The result is a market where flow increasingly determines direction and is concentrated in fewer names, trading more selectively." According to the report, the likelihood of broad-based rallies where most alternative cryptocurrencies rise together is decreasing. This is because institutional capital is focused on a handful of assets.
DERIVATIVES AND TOKENIZATION GAIN MOMENTUM
The report highlighted the rise in derivatives usage as another trend defining the market. According to Wintermute, the notional trading volume of altcoin options on the over-the-counter desk increased approximately 3.4 times from the second half of 2025 to the first half of 2026. This increase was largely driven by investors seeking yield rather than taking direct price positions. During the same period, contracts for difference also began to be used across a wider range of cryptocurrencies for directional bets, hedging, and basket strategies.
Beyond the trading side, tokenized real-world assets continued to gain momentum. In the first six months of the year, the value of tokenized assets increased by approximately 50 percent to reach $31 billion. The average monthly transfer volume more than doubled to $9 billion. According to the company, institutions are predominantly adopting tokenized treasury bonds, money market funds, and private credit products, while retail investors remain more active in tokenized equities.
Wintermute expects retail participation to return in the next bull market. However, according to the company, it is unlikely that institutional influence will weaken. According to the report, the market is increasingly taking on the characteristics of its largest participants, with professional investors shaping liquidity, pricing, and the types of assets that attract capital.