Wintermute: Derivatives Doubled, OTC Flow Reshapes Crypto Market

Wintermute's H1 2026 over-the-counter crypto report shows derivatives volumes doubled in 2025 and kept rising through the first six months of this year. Institutional flows now dominate OTC trading, the liquidity provider said.

The report, released Wednesday, tracks a shift in market structure that Wintermute first flagged in its 2025 analysis. Liquidity is consolidating in Bitcoin and Ethereum. Smaller tokens are losing volume. Institutions favor OTC desks and structured products over retail spot markets, the firm said. Wintermute's 2025 analysis showed altcoin rallies shortened significantly last year, driven by lower retail participation and tactical positioning. The 2026 update shows the same pattern, the firm said.

Derivatives volumes doubled year-over-year in 2025 and continued rising in 2026, Wintermute said. The firm attributed the growth to institutional demand for capital-efficient execution and yield strategies. Wintermute Asia expanded its derivatives desk and trades products that reference multiple crypto assets. Options are taking a larger share of institutional portfolios, the report said.