Key Insights
- Capital flowed into crypto in 2025 but concentrated in BTC, ETH, and select large-cap tokens
- Altcoin rallies averaged 20 days in 2025, down from 60 days in 2024
- ETFs and DATs funneled liquidity to majors coins
Capital entered the crypto market in 2025, but the expected rotation into altcoins never occurred, according to a new report from Wintermute.
The market maker’s analysis of proprietary OTC flow data shows liquidity remained concentrated in Bitcoin, Ethereum, and a small group of large-cap assets throughout the year.
Wintermute’s Digital Asset OTC Markets 2025 report examined trading patterns across regions, products, and counterparty types.
ETFs and DATs Concentrated Liquidity in Major Assets
Exchange-traded funds and digital asset treasury companies became the primary channels through which capital entered crypto in 2025.
These structured vehicles funneled liquidity into Bitcoin, Ethereum, and select large-cap tokens, which limited broader market participation compared to previous cycles.
The data show that the combined share of Bitcoin and Ethereum in OTC trading volume declined from 54% in 2023 to 49% in 2025.
The shift went primarily to top 10 tokens excluding BTC, ETH, wrapped assets, and stablecoins. This category grew from 31% of volume in 2023 to 39% in 2025.
Other altcoins saw their share contract from 15% in 2023 to 12% in 2025. The pattern shows capital moved up the market cap spectrum rather than spreading broadly across the token ecosystem.
Wintermute attributed this concentration to ETF and DAT mandates extending beyond Bitcoin and Ethereum into assets like Solana through staking ETFs and index products.
Altcoin Rallies Shortened as Narrative Conviction Faded
Altcoin rallies averaged approximately 20 days in 2025, down from roughly 60 days in 2024. Meme coin launchpads, perpetual DEXs, and emerging payment primitives all peaked and faded quickly during 2025.
The meme coin cycle collapsed in early Q1, marking the end of the broad speculative activity that had been seen in late 2024. Wintermute noted that investors no longer held positions through extended narrative development periods.
The report states that altcoin rallies became “more selective” as liquidity and risk capital concentrated into fewer tokens.
Trading activity broadened beyond BTC and ETH, but positioning data shows both institutions and retail moved back into majors following the October 10 forced deleveraging event.
OTC Volumes Grew as Market Structure Matured
Wintermute’s OTC volumes increased 14.7% year-over-year in 2025. The number of counterparties increased by 7.7%, while the volume of tokens traded rose by just 0.8%.
The modest token count increase came alongside a higher median of unique tokens traded on a 30-day rolling basis, rising from 133 in 2024 to 160 in 2025.
The counterparty growth was led by institutions, which increased 23% year-over-year. Retail brokers grew 15%, while individuals increased 5%.
Wintermute noted that institutional engagement shifted from “exploratory and sporadic” in 2024 to a more sustained and deliberate approach in 2025.
The report describes this as evidence that institutions “are here to stay” despite lackluster price action during the year.
Options activity more than doubled year-over-year, increasing 2.5 times from Q4 2024 to Q4 2025. The growth came with a change in how market participants used options products.
Regional Flows Showed Mixed Responses to Macro Events
Regional positioning patterns diverged throughout 2025 rather than moving in coordination.
Asia sold during April’s tariff announcements, Europe redistributed holdings through summer months, and the United States led net selling into year-end amid hawkish Federal Reserve signals.
Wintermute characterized these as “slow-moving, region-specific shifts to macro catalysts” rather than the synchronized global flows seen in previous market cycles.
Retail investors directed capital toward equity markets in 2025, particularly into AI, robotics, and quantum computing themes.
After the October 10 liquidation event, retail flows through broker channels rotated back to Bitcoin and Ethereum for the first time since late 2023.
Wintermute noted this is a departure from retail behavior in 2023 and early 2024, when speculative capital readily moved into altcoins and new narratives.
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