Institutional Investors Dominate Crypto Trading, Wintermute Data Shows

Wintermute reported that institutional investors accounted for 72% of spot trading volume on its over‑the‑counter (OTC) desk in the first half of 2026, up from 59% a year earlier. Hedge funds, asset managers, proprietary trading firms and corporate treasuries now drive the majority of crypto market activity, shifting the sector toward a more mature, liquidity‑focused structure.

The increased professional participation has reduced Bitcoin’s realised volatility from roughly 70% to about 45% and spurred a three‑fold rise in alt‑coin options trading volume on the OTC desk. Institutions are also using exchange‑traded funds, derivatives and structured products to gain exposure to digital assets. Despite Bitcoin’s price falling more than 50% from its October 2025 peak, market behaviour is described as “trading like all other asset classes these days,” according to Stephen Coltman, head of macro at 21Shares. Alistair Byas‑Perry of 21Shares noted, “We’re actually seeing more due diligence from asset managers and wealth managers.”