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Wall Street's Crypto Moves Just Got Exposed
Coin Bureau· 2025-07-23 14:01
Market Trends & Dynamics - The OTC market review report by Wintermute indicates a divergence in market approaches between retail and institutional investors, with institutions focusing on major cryptos like Bitcoin and Ethereum, while retail is shifting towards altcoins [1] - The report highlights a 412% jump in OTC options trading compared to the first half of 2024, and the number of traded contracts for difference (CFDs) has doubled [1] - Trading volumes spiked in early 2025 but normalized in Q2 as macro catalysts subsided, with activity increasingly concentrated around established assets like BTC and ETH [1] - Spot trading on centralized exchanges grew by 7%, while OTC volumes rose by 18%, indicating that institutional investors prefer executing large trades outside of exchanges [1] - In 2024, both institutional and retail investors were rotating into smaller, riskier projects, but in the first half of 2025, institutions stuck with larger cryptos while retail pushed deeper into smaller altcoins [1] - After dominating in 2024, memecoin activity dropped in 2025, with flows shifting from legacy names to newer tokens [12] Regulatory Landscape - The report points to the improving regulatory landscape with regulatory clarity coming from the EU markets in crypto assets bill (MiCA) and the Genius Act in the US [1] - The US has taken greater steps towards regulatory clarity with President Trump signing the Genius Act into law on the 18th of July, providing some much-needed clarity on stable coins [31] Institutional vs Retail Behavior - From 2023 to 2024, institutional OTC shares dropped from 74% to 67% and retail shares from 55% to 46%, between 2024 and 2025, though, institutional allocation didn't budge, while retail fell further to 37% [2] - Institutions are sticking to a smaller range of meme coins, while retail investors have more than doubled the amount of meme coins they're willing to trade [13] Sector Performance - Capital has been consolidating around currency networks (including Bitcoin), general-purpose blockchain networks (including Ethereum), and blockchain utility and tools [8] - Stable coins overtook memecoins to become one of the top three sectors [10] - Annualized memecoin activity in 2025 has dropped 29% from 2024 and 17% compared to the first half of 2024 [14]