“Crypto markets show a distinct split, Wintermute notes, as institutional money flows into Bitcoin and Ether while retail appetite fuels altcoin gains.”

Institutions Focus on BTC and ETH While Retail Investors Chase New Altcoin Favorites: Wintermute Report

The crypto market is undergoing a noticeable split, with institutional and retail investors diverging sharply in strategy, according to a mid-year update from digital asset trading firm Wintermute.

Institutions continue to favor large-cap cryptocurrencies like bitcoin (BTC) and ether (ETH), while retail investors are increasingly pivoting to riskier, emerging altcoins and memecoins such as BONK, POPCAT, and WIF. Classic retail favorites like Dogecoin (DOGE) and Shiba Inu (SHIB) have seen their popularity fade in comparison.

Wintermute’s over-the-counter (OTC) trading data reveals that institutional demand remains firmly anchored to BTC and ETH, which together accounted for 67% of institutional volume — largely supported by ETF inflows and structured investment vehicles. In contrast, retail BTC and ETH exposure dropped from 46% to 37% as capital shifted into newer, high-volatility tokens.

“This is no temporary shift,” said Wintermute CEO Evgeny Gaevoy. “The market is maturing. Institutions view crypto as a macro-level asset, while retail traders continue to hunt for innovation and breakout opportunities.”

Traditional finance (TradFi) firms were the fastest-growing group in OTC markets, posting 32% growth year-over-year, spurred by regulatory developments like the U.S. GENIUS Act and the EU’s Markets in Crypto-Assets (MiCA) framework. Retail brokers also saw a 21% jump in volume, while crypto-native trading firms pulled back slightly with a 5% decline.

The report also highlighted a surge in OTC crypto options trading, which grew by a staggering 412% in H1 2025. Institutions are increasingly turning to derivatives to manage risk and generate yield. The variety of Contracts for Difference (CFDs) also doubled, enabling more efficient exposure to illiquid assets.

Wintermute said its OTC spot trading volumes outpaced those on centralized exchanges — an indication that larger, more discreet trades are becoming the norm, particularly among institutional players.

While overall retail trading in memecoins has softened, the number of different tokens traded per user has doubled. This signals a broadening interest in micro-cap assets. BONK, POPCAT, and WIF have emerged as top performers in this long-tail segment, overtaking DOGE and SHIB in popularity.

Looking forward, Wintermute analysts suggest keeping a close eye on the potential approval of a spot Dogecoin ETF, with a final decision expected by October.

“If greenlit, it could reshape the retail landscape and pave the way for regulated altcoin investment products,” the report stated.