Key highlights:
- Institutional investors have set an all-time high for half-year spot OTC flows, according to a Wintermute report
- Amid the impressive figures, Wintermute’s analysts point to less volatile markets as cryptocurrencies become a mature asset class
- Institutional investors are concentrating capital on a small pool of crypto tokens that will decide the winners of the next altcoin rally
A new report by Wintermute has confirmed institutional investors’ dominance in spot over-the-counter (OTC) desks in the first half of the year. Furthermore, Wintermute suggests the next altcoin rally will produce only a handful of winners as institutions concentrate liquidity in “a narrow set of tokens.”
Institutional flow is changing the crypto market
According to the Wintermute report, institutional share of spot OTC flow reached its highest level on record in the first half of 2026. Institutions accounted for 72% of Wintermute’s OTC flow as retail traders adopt a cautious stance amid bearish market conditions.
In H1 2025, institutions accounted for 59% with the figure rising to 61% in H2 2025. Wintermute’s analysts noted that as a result of heavy institutional inflow, the broader cryptocurrency market is maturing.
Right off the bat, the report disclosed that there is less volatility in the market as participants do not trade in response to short-term moves. Typically, they operate under defined mandates and risk limits, holding their positions over longer periods.
“As crypto works through a bear market, with retail largely absent and preoccupied with equities, the structure underneath is easier to see,” read the report. “The asset class is maturing, whatever recent price action suggests.”
Meanwhile, the report also highlighted rising use of derivatives among OTC traders. Per the report, the use of derivatives is up 3.4x in altcoin options notional traded on Wintermute’s OTC desks compared to H2 2026.
Outside of trading, Wintermute disclosed that tokenized real-world assets are gaining significant traction. In the first six months of 2026, tokenized assets have surged by 50% to sit at $31 billion with the report predicting a meteoric growth by the end of the year.
Altcoin rally will produce fewer winners
A key point in the Wintermute report is the finding that institutional investors are concentrating funds around a smaller group of altcoins.
Source: Wintermute
“Our trading data show they are active in a narrow set of tokens, with a growing share of exposure expressed through options and leverage rather than spot. The result is liquidity concentrating in the names the institutions care about, while the long tails thin out.”
According to Wintermute’s analysts, the multi-month trend accounts for a narrowing altcoin rally compared to previous years. Wintermute added that leading institutional investors are turning away from Bitcoin as part of the trend.
The changing pattern could make future altcoin rallies selective with institutions flocking to XRP, Solana, and Ethereum. Morgan Stanley launched Ethereum and Solana ETFs with staking rewards in a nod to rising institutional interest in both assets. Meanwhile, several Ethereum research institutions have set up shop to prepare the network for an avalanche of institutional users.