Institutional investors accounted for 72% of Wintermute’s spot over-the-counter flow in the first half of 2026, the market maker disclosed this week. The figure underscores a broader shift: capital in the crypto market is concentrating in a shrinking pool of tokens, and altcoin rallies are becoming more selective. The data suggests the next so-called altseason may have far fewer winners than previous cycles.
72% from institutions
Wintermute’s OTC desk saw institutions — hedge funds, asset managers, family offices — dominate trading activity. Retail made up the remaining 28%. That’s a stark split, and it reflects how the market’s center of gravity has moved. Institutions don’t trade like retail. They tend to move larger blocks, hold longer, and focus on liquid assets. That preference is reshaping where capital flows.
Fewer tokens get the money
The firm’s data also shows that capital is clustering in fewer tokens. Instead of spreading across hundreds of projects, money is piling into a smaller set of names. It’s a pattern that’s been building for months. The result: many altcoins are seeing thinner volumes and less price action, even when the broader market rallies.
The selective altseason
Altcoin rallies are becoming more selective, Wintermute noted. In past cycles, a rising tide lifted nearly every token. That’s not happening now. The next altseason — if it arrives — will likely have a narrower set of winners. Tokens with real liquidity, institutional backing, and clear use cases are the ones drawing bids. The rest are getting left behind.
What does that mean for traders? The days of buying any small-cap alt and hoping for a 10x may be fading. The market is maturing, and the money is following the path of least resistance — into assets institutions can actually trade.
