Wall Street is deepening its control over the crypto market, with derivatives and ETFs reshaping the trading structure.

According to a Bloomberg report, Wintermute data shows that in the first half of 2026, institutional investors accounted for 72% of the spot trading volume on its over-the-counter (OTC) platform, up from 59% a year earlier. Despite weak overall crypto market trading volumes, hedge funds and asset management firms are gradually replacing retail investors as the primary source of market liquidity. Wintermute analysts noted that the crypto market is shifting to an institution-driven structure, with rising capital concentration, derivatives playing a larger role in expressing risk exposure, and secondary market trading of tokenized assets beginning to scale. Institutions are increasingly gaining exposure via derivatives, structured products, and ETFs rather than directly purchasing tokens. Beyond Bitcoin (BTC) and Ethereum (ETH), trading volume for altcoin options on Wintermute’s OTC platform grew more than threefold compared to the second half of 2025, though liquidity is concentrated in a smaller number of tokens. Over the past two years, the number of tokens traded by professional counterparties has risen by 24%, while the number traded by retail investors has jumped 76%—a sign that institutions favor more liquid assets. Bitcoin is now down roughly 50% from its peak of over $126,000 in October 2025, though the decline has been more gradual than in previous crypto winters. Stephen Coltman, head of macro at 21Shares, said crypto assets are now traded more like other asset classes; the market may be nearing a bottom, though confirmation will only come in hindsight.