The world of crypto investing is splitting into two very distinct lanes: institutional players are firmly planted in bitcoin (BTC) and Ethereum’s ether (ETH), whereas retail investors are increasingly chasing after altcoins and memecoins, unveils a mid-year analysis from crypto trading powerhouse Wintermute.
OTC Trading Reveals Institutional Steadiness Versus Retail Exploration
The latest report highlights that over-the-counter (OTC) spot trading shows institutional activity concentrated around the top two heavyweights, BTC and ETH, maintaining a solid 67% share. This stability is likely buoyed by inflows from exchange-traded funds (ETFs) and sophisticated accumulation structures. In stark contrast, retail investors have dialed down their bitcoin and ether holdings from 46% down to 37%, opting instead to deploy funds into newer, riskier tokens.
A Sign of Market Maturation
“This split isn’t some fleeting blip,” remarks Evgeny Gaevoy, Wintermute’s founder and CEO. “It signals a crypto market growing more advanced, nuanced, and specialized.”
He adds, “Rather than all riding the same wave, institutions now treat crypto as a macro asset class. Meanwhile, retail players are drawn toward the bleeding edge of innovation.”
TradFi’s Growing Footprint and Retail’s Persistent Enthusiasm
Traditional finance (TradFi) firms have surged as the fastest-growing segment in OTC trading, witnessing a 32% year-over-year boost. This momentum is largely powered by regulatory progress such as the U.S. GENIUS Act and the EU’s MiCA framework rollout—both instilling heightened confidence among larger entities to engage more deeply in crypto markets.
Retail brokers aren’t sitting still either, reporting a robust 21% increase in trade volumes over the same timeframe. Meanwhile, crypto-native firms have retrenched slightly, registering a 5% decline.
Derivatives and Their Role in Institutional Strategies
OTC options volume exploded by 412% during the first half of 2024 as institutions increasingly leveraged derivatives for hedging risks and boosting yield generation. Alongside, the variety of Contracts for Difference (CFDs) doubled, enabling traders to access less liquid tokens more efficiently with less capital commitment.
Wintermute also revealed that its own OTC desk’s spot trading volume has soared at over twice the velocity of centralized exchanges, underscoring a preference among TradFi entities for more discreet, large-ticket trades.
Memecoin Landscape: From Fragmentation to Niche Diversification
Activity in memecoins is fracturing. Although the overall retail trading volume in memecoins has dipped, the count of tokens traded by individual investors has doubled—pointing to a widening curiosity for tiny, micro-cap assets scattered throughout the crypto’s long tail.
Established memecoins such as Dogecoin (DOGE $0.2404) and Shiba Inu (SHIB $0.041286) have ceded ground to a slew of emerging niche names like Bonk (BONK $0.042278), DogWithHat (WIF), and Popcat (POPCAT $0.2441), the report points out.
Mid-2025 Outlook: Regulatory Moves and Market Ripples
Turning to the latter half of 2025, Wintermute’s analysts urge attention toward spot Dogecoin ETF filings, with a pivotal regulatory decision expected by October. The outcome here could send shockwaves through the retail market, potentially setting a benchmark for alternative asset acceptance.
Key Data Snapshot:
- Institutional OTC trading for BTC and ETH holds steady at 67%.
- Retail BTC and ETH exposure down from 46% to 37%.
- OTC options volume surged by 412% in H1 2024.
- Traditional finance firms’ OTC trading climbed 32% YOY.
- Retail brokers increased activity by 21%; crypto-native firms dropped by 5%.
