Crypto Market Splits: Institutions Stick With Bitcoin and Ether While Retail Chases New Altcoin Hype, Says Wintermute
The crypto market is increasingly dividing into two camps: institutions and retail investors are charting different courses, according to a mid-year report from trading firm Wintermute.
Institutional players remain anchored in established assets like bitcoin (BTC) and ether (ETH), while retail traders are diving deeper into altcoins and fresh memecoin bets such as BONK, POPCAT, and WIF. Classic names like dogecoin (DOGE) and shiba inu (SHIB) are losing steam among this new wave of speculative retail trading.
Wintermute’s analysis of over-the-counter (OTC) spot trading shows institutional activity in BTC and ETH held steady at 67%, largely supported by ETF flows and structured investment vehicles. In contrast, retail investors reduced their BTC and ETH exposure from 46% to 37%, shifting funds into higher-risk, emerging tokens.
“This isn’t just a temporary trend,” said Evgeny Gaevoy, CEO of Wintermute. “We’re witnessing a maturing market where institutions treat crypto as a macro asset class, while retail traders remain focused on innovation and volatility.”
Traditional finance (TradFi) firms were the fastest-growing segment in OTC volumes, up 32% year-on-year. Regulatory clarity from initiatives like the U.S. GENIUS Act and the EU’s MiCA framework has boosted confidence among larger firms. Meanwhile, retail brokers saw a healthy 21% rise in activity, though crypto-native firms pulled back slightly with volumes dipping by 5%.
OTC options trading skyrocketed 412% compared to the first half of 2024, driven by institutions seeking hedging tools and yield-generating strategies. The variety of Contracts for Difference (CFDs) also doubled, giving traders more flexible exposure to less-liquid tokens.
Wintermute noted that its own OTC spot volumes have grown at more than twice the pace of centralized exchanges, highlighting a trend toward discreet, large-scale trading favored by institutional investors.
In the retail world, overall trading in memecoins has dipped, but the range of tokens traded by individual users has expanded, signaling an appetite for micro-cap assets. Tokens like BONK, POPCAT, and WIF have overtaken legacy names like DOGE and SHIB in popularity.
Looking ahead, Wintermute flagged the potential for significant market shifts depending on the outcome of pending regulatory decisions—particularly a possible spot Dogecoin ETF, with a ruling expected by October.
“The decision could have a major impact on retail interest and set a precedent for other altcoin-based financial products,” Wintermute’s report concluded.
