Institutions Steer the Wheel in Crypto’s Over-the-Counter Arena

The over-the-counter (OTC) crypto market is witnessing a seismic shift as institutions carve out a significant presence. In the first six months of 2026, institutional players commanded a staggering 72% of all spot trading activities, a notable climb from 61% in the latter half of 2025. This trend, reported by crypto market maker Wintermute, highlights a growing influence among institutional investors over the industry.

How are institutions reshaping the altcoin scene?

Institutional investors are increasingly focusing their trading on a selective range of digital assets. As Wintermute points out, liquidity now funnels predominantly toward tokens that institutions prefer, narrowing the potential for widespread altcoin rallies. This concentrated activity signifies fewer and more selective market victors, with trading volumes for lesser-known digital assets dwindling significantly.

Between 2024 and the first half of 2026, a 24% increase in unique digital assets was traded by institutional entities via Wintermute’s OTC platform. Conversely, retail investors enlarged their token repertoire by a substantial 76% in the same timeframe, indicating a broader engagement across different assets by non-institutional traders.

Despite an initial surge in price and trading volumes, institutional involvement typically wanes rapidly. Such activity generally declines after just a day, whereas retail traders maintain higher interest levels for nearly three days, per Wintermute’s analysis.

Wintermute noted that liquidity has begun to concentrate in assets favored by institutions, resulting in a weaker market for the “long tail” of smaller tokens.

Is the market heading towards centralization?

Yes, independent data reinforces this trajectory. On June 20, CryptoQuant CEO Ki Young Ju underscored a drop-off in routing profits from Bitcoin to smaller altcoins—a trend once common. Now, the largest ten non-stablecoin altcoins comprise roughly 80.5% of the total altcoin market cap, shedding light on the mounting sway of major assets.

In July 2025, Kaiko data indicated a growing concentration of trading volume among the top ten altcoins, a rise from previous months, while activity among smaller tokens continued its downturn.

Recent insights from DWF Labs’ Andrei Grachev further illustrate that broad altcoin rallies are being overtaken by dedicated shifts within particular sectors. As of March, institutional interest predominantly gravitates towards Bitcoin, Ether, and tokenized real-world assets.

• Institutions hold 72% of OTC crypto trading activities.
• The focus is shifting towards a smaller range of favored digital assets.
• Retail investors engage more widely than institutional counterparts.
• Trading predominance in large-cap altcoins is increasing.
• Platforms like 1stepSwap provide new pathways for trading shares and commodities.

This trend towards centralization and sector-focused trading has made platforms bridging traditional and crypto assets more pertinent. Innovations now allow users access to tokenized shares of major US companies and commodities, such as 1stepSwap, providing seamless integration into traditional financial markets without intermediaries. As the market narrows its focus, strategic diversification remains key.