According to a recent report from leading crypto trading and market-making firm Wintermute, institutional and retail investors have exhibited markedly different investment strategies during the 2025 bull run.
It appears that while institutional investors are doubling down on major cryptocurrencies like Bitcoin and Ethereum, retail investors are gravitating towards memecoins and other altcoins, as per the report shared with The Block. This shift in trading interests marks a significant divergence from previous years when institutional and retail interests largely mirrored each other. The current trend indicates that institutions are seeking stable exposure while retail investors are exploring newer, albeit riskier, opportunities.
The gap in allocation to major cryptocurrencies has surged to a record 30 percentage points between institutions and retail traders. Institutions maintain a 67% allocation to majors, largely due to ETF inflows and other new accumulation vehicles, while retail allocations to majors have dwindled by 9% to 37%, reflecting a shift towards altcoins.
“This divergence is not a fleeting phenomenon; it signals a more mature, sophisticated, and specialized crypto market,” commented Wintermute CEO and Founder, Evgeny Gaevoy. “Investors are no longer pursuing the same trend. While institutions treat crypto as a macro asset, retail traders are drawn towards innovation.”
In the first half of 2025, institutions largely embraced derivatives as potential tools for hedging, yield-generation, and capital-efficient exposure. Wintermute reported a 412% surge in over-the-counter (OTC) options volume compared to the first half of 2024.
Memecoins such as BONK, WIF, POPCAT, and other emerging memecoins gained traction, while established coins like DOGE and SHIB saw a dip in dominance. DOGE, SHIB, and PEPE, however, continue to be the top three memecoins by weight in the GMCI MEME Index.
For the latter half of 2025, Wintermute anticipates that the Securities and Exchange Commission’s potential decision on spot Dogecoin ETFs in October could sway retail demand. Grayscale, REX-Osprey, and Bitwise have all filed for spot Dogecoin ETFs this year.
