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Institutional crypto trading hits a record 72% as Wall Street calms crypto's wild swings
['Helene Braun']
CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data
Institutional investors are now shaping crypto markets more than retail traders, marking what Wintermute has described as a turning point in the evolution of digital assets.
"As crypto works through a bear market, with retail largely absent and preoccupied with equities, the structure underneath is easier to see," the report said.
Rather than chasing short-term price swings, institutional investors tend to operate under defined mandates and risk limits, holding positions over longer periods.
The result, the report said, is a market with lower volatility and liquidity concentrated in a smaller group of assets.
The report also found institutional investors trade a relatively narrow universe of tokens, while retail investors continue to spread activity across a much larger number of assets.