Crypto Market Matures as Institutions Allocate 67% to Bitcoin and Ethereum

The crypto market is experiencing significant changes as it matures, with traditional financial institutions increasingly adopting digital assets. This shift is driven by improved regulatory clarity and growing demand from institutional investors. According to Wintermute, a trading firm and over-the-counter (OTC) desk, the crypto trading market is diversifying, with a notable divergence between institutional and retail investors.

Wintermute's 1H 2025 OTC Market Report highlights that institutions are maintaining larger allocations to Bitcoin and Ethereum compared to retail investors. The firm noted that institutions allocated 67% of their holdings to Bitcoin and Ethereum, while retail investors reduced their allocation to 37%, shifting towards altcoins. This trend marks the first significant divergence in investment strategies between these two groups since the last bull market.

Spot volumes on Wintermute's OTC desk have grown by more than 2.4 times that of volumes on centralized exchanges, primarily driven by institutional investors and retail brokers. This growth indicates a rising preference among institutions to execute larger trades without holding assets on exchange platforms. Options trading, in particular, saw a significant surge, increasing by 412% in the first half of 2025. This trade flow was dominated by Bitcoin and Ethereum, which composed 96% of all options trading.

The focus on Bitcoin and Ethereum by institutional investors contrasts with retail investors, who have been rotating into smaller, high-beta tokens and emerging narratives like stablecoins. Institutions, on the other hand, have shown a preference for infrastructure themes. This shift in risk appetites is seen as an early sign of the market maturing, reflecting a more nuanced approach to digital asset investment.

The acceptance and mainstream adoption of crypto have become more apparent, with the administration becoming more friendly to crypto firms. The success of Bitcoin and Ethereum ETFs and the growing trend of crypto treasury vehicles have validated interest from the world’s biggest capital allocators and the largest companies, indicating that digital assets are increasingly viewed as a legitimate investment vehicle.