Institutional crypto trading hits a record 72% as Wall Street calms crypto’s wild swings

That concentration could make future altcoin rallies more selective.

“The result is a market where the flow that increasingly sets direction is concentrated in fewer names, traded more selectively,” the report said. It added that broad-based rallies, where most alternative cryptocurrencies rise together, are becoming less likely as institutional capital focuses on a handful of assets.

Derivatives and tokenization gain traction

The report also points to growing use of derivatives as another defining trend. Wintermute said notional trading volume in altcoin options on its OTC desk increased about 3.4 times from the second half of 2025 to the first half of 2026, driven largely by investors seeking yield rather than outright price exposure. At the same time, contracts for difference, or CFDs, are being used across a wider range of cryptocurrencies for directional trading, hedging and basket strategies.

Beyond trading, tokenized real-world assets continued to gain momentum, with the value of tokenized assets climbing nearly 50% to $31 billion during the first six months of the year, while average monthly transfer volume more than doubled to $9 billion. The firm said institutions are primarily adopting tokenized Treasuries, money market funds and private credit, while retail investors remain more active in tokenized equities.

While Wintermute expects retail participation to return during the next crypto bull market, it argues institutional influence is unlikely to fade. Instead, it said the market is increasingly taking on the characteristics of its largest participants, with professional investors shaping liquidity, pricing and the types of assets that attract capital.