tl;dr
The crypto market is maturing and diversifying, driven by clearer regulations and increased institutional demand, according to Wintermute's 1H 2025 OTC Market Report. Institutional investors allocate 67% of their portfolios to Bitcoin and Ethereum, while retail investors reduce holdings in these ass...
The crypto market is undergoing a significant transformation, characterized by maturation and diversification driven by clearer regulations and rising demand from traditional financial institutions, according to trading firm Wintermute. Their 1H 2025 OTC Market Report reveals a distinct split emerging between institutional and retail investors’ strategies. Institutional players continue to allocate a predominant 67% of their portfolios to Bitcoin (BTC) and Ethereum (ETH), while retail investors have decreased their holdings in these assets to 37%, instead rotating towards altcoins.
Wintermute, which handles over $15 billion in daily trading volume, notes that spot trading volumes on its OTC desk have surged to more than 2.4 times those on centralized exchanges, fueled primarily by institutions and retail brokers rather than crypto-native traders. This trend underscores a preference for executing larger trades without holding assets on centralized platforms, signaling increased sophistication among institutional participants.
One of the standout developments in the first half of 2025 is a dramatic 412% increase in options trading on Wintermute’s OTC desk, predominantly centered around Bitcoin and Ethereum, which together make up 96% of options activity. This focus on major cryptocurrencies marks a divergence from retail investors, who continue to explore smaller, high-beta altcoins, while institutions stabilize their holdings in established assets—a shift not seen since the last bull market.
Retail investors have shown earlier interest in emerging themes like stablecoins, while institutions gravitate towards infrastructure-related projects, reflecting evolving risk appetites and modeling a maturing market landscape. This growing institutional embrace aligns with broader signals of mainstream adoption, including more crypto-friendly policies post-2024 election, diminished regulatory pressures, and the successful launch of Bitcoin and Ethereum ETFs. The emergence of crypto treasury management by major corporations further cements digital assets as credible components of diversified investment portfolios.