Organizations are pouring money into Bitcoin, Ethereum as retail investors 'turn their backs'
The crypto market is maturing and becoming increasingly fragmented as traditional financial institutions are increasing their holdings of Bitcoin and Ethereum, while retail investors are flocking to altcoins. A report from Wintermute – a well-known OTC trading desk – for the first half of 2025 shows that institutions maintain 67% of capital in BTC and ETH, while the ratio for retail investors has dropped to only 37%.
Wintermute states that spot trading volume through OTC desks has been 2.4 times that of CEX, reflecting the demand for executing large orders off-exchange to optimize costs and security. Notably, options trading has exploded by 412% compared to the first half of 2024, primarily revolving around BTC and ETH, which account for up to 96% of total volume.
Wintermute observes that this fragmentation indicates differing risk appetites: retail investors are moving towards altcoins and stablecoins to 'catch the wave' of new trends, while institutions remain steadfast with foundational assets, cooling off on shifting capital to risky tokens as they did previously.
The regulatory environment also supports this trend. Under President Donald Trump, the U.S. government significantly eased investigations into crypto companies, facilitating the development of Bitcoin and Ethereum ETFs, attracting substantial capital flows from global institutional investors.
This is seen as a positive signal, proving that crypto is gradually becoming a legitimate and sustainable investment channel.
Investing in crypto always carries risks. Consider carefully before participating!
