Crypto Markets Bifurcate With Institutions Focusing on BTC and ETH While Retail Chases Alts: Wintermute
Main Idea
The crypto market is experiencing a split, with institutional investors focusing on Bitcoin and Ethereum while retail investors shift towards newer, more speculative altcoins.
Key Points
1. Institutional players are anchoring themselves in Bitcoin and Ethereum, while retail investors are pouring into altcoins like BONK, POPCAT, and WIF.
2. Institutional exposure to BTC and ETH dropped from 46% to 37%, with capital shifting towards newer, more speculative tokens.
3. Traditional finance (TradFi) firms saw a 32% year-over-year growth in OTC trading volumes, driven by regulatory developments like the U.S. GENIUS Act and EU’s MiCA.
4. Retail brokers experienced a 21% rise in trading volume, while crypto-native firms saw a 5% decline.
5. OTC options volume surged 412% compared to the first half of 2024, and Contracts for Difference (CFDs) doubled in variety, offering access to less liquid tokens.
Description
The crypto market is splitting in two. Institutional and retail investors are taking increasingly different paths, with institutional players anchoring themselves in bitcoin BTC and Ethereum's ether ETH while retail investors pour into altcoins and memecoins, according to a mid-year report from crypto trading firm Wintermute. Analyzing over-the-counter spot trading volumes, institutional trading volumes with the two largest tokens held steady at 67%, likely backed by ETF inflows and structured a...
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