Institutions Now Drive Crypto Liquidity as Derivatives and ETFs Reshape Market Structure

Wintermute's latest report, cited by Bloomberg on Aug. 5, shows institutional investors accounted for 72% of spot trading volume on its over-the-counter platform in the first half of 2026, up from 59% a year earlier. Even as overall crypto market volumes softened, hedge funds and asset managers are gradually displacing retail traders as the main source of market liquidity. Wintermute analysts say the market is shifting toward an institution-driven structure, with rising capital concentration and derivatives playing a bigger role in expressing risk exposure. Secondary-market trading of tokenized assets is also starting to gain scale. Institutions are increasingly gaining exposure through derivatives, structured products and ETFs rather than buying tokens directly. Beyond BTC and ETH, options volume for altcoins on Wintermute's OTC platform more than doubled from H2 2025, though liquidity is concentrated among fewer tokens. Over the past two years, the number of tokens traded by professional counterparties grew 24%, while the number traded by retail clients grew 76% — a sign that institutions favor more liquid assets. Bitcoin is currently down about 50% from its high above $126,000 in October 2025, but the decline has been more gradual than previous crypto winters. Stephen Coltman, head of macro at 21Shares, said crypto assets now trade more like other asset classes; the market may be near a bottom, but that can only be confirmed in hindsight.