Wintermute and Grayscale note institutional dominance and retail rise in crypto

Wintermute’s latest market‑making report on crypto spot‑OTC flows for the first half of 2026 shows institutions accounting for about 72% of the volume, driven by hedge funds, asset managers and family offices. Retail activity remained low, a trend the firm links to reduced Bitcoin realized volatility – down from roughly 75% in the 2016‑2020 cycle to about 45% now – and fewer speculative price spikes, prompting many retail traders to look toward other markets such as tech and AI equities.

Grayscale, a leading digital‑asset manager, reports that retail demand for crypto exchange‑traded funds (ETFs) is accelerating and narrowing the gap with institutional buying. While institutions still dominate overall volumes, the retail share is approaching institutional levels, helped by the tax‑efficient in‑kind redemption mechanism that allows investors to receive underlying assets without triggering immediate taxable events. The convergence signals growing confidence in crypto‑linked products and a more diversified capital base for the sector.