Institutional investors account for 72% of crypto trading volume in H1 2026
Institutional investors dominated crypto markets, comprising 72% of spot trading volume on Wintermute's OTC desk in the first half of 2026, up from 61% in the second half of 2025. This shift marks a turning point in the evolution of digital assets, as retail traders remain largely absent during the bear market. Institutions are operating under defined mandates, leading to lower volatility and concentrated liquidity in fewer assets. Realized volatility has decreased from approximately 70% in previous cycles to around 45% currently. Institutional trading focuses on a narrow range of tokens, making future altcoin rallies more selective. The report indicates that broad-based rallies are becoming less likely as institutional capital concentrates on a handful of assets. Additionally, notional trading volume in altcoin options surged 3.4 times from H2 2025 to H1 2026, driven by yield-seeking investors. Tokenized real-world assets also gained traction, with their value rising nearly 50% to 31 billion dollars in the first half of the year, and average monthly transfer volume more than doubling to 9 billion dollars. While retail participation is expected to return in the next bull market, institutional influence is likely to persist, shaping liquidity, pricing, and asset preferences.
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