Wall Street Tightens Grip on Crypto as Institutions Now Drive 72% of Spot Flow: Report

Institutions are concentrating liquidity into fewer tokens instead of spreading capital across the wider market. This week, Wintermute said institutional investors made up 72% of its spot OTC crypto flow in the first half of 2026, versus 59% a year ago. Professional investors are changing crypto markets by concentrating on fewer assets, utilizing derivatives, and muting the extreme price swings once associated with retail trading, the firm says. Institutions Are Reshaping Crypto Trading Patterns Wintermute’s 1H26 OTC report found that institutional counterparties, including hedge funds, digital asset treasuries, asset managers, and family offices, accounted for 72% of spot flow on its desk between January and June, with the figure rising from 61% in the second half of 2025 and 59% in the first half of 2025. The company pointed out that institutional activity had become large enough to influence market direction and token performance. It wrote that “institutions are now the clear drivers of Wintermute’s OTC flow,” adding that their trading habits are changing how liquidity is distributed across crypto. One major shift is that institutions are staying focused on a smaller group of to...