- According to Wintermute, institutions are still buying up BTC and ETH while retail investors are switching to alt coins
- Institutions have maintained allocations to BTC and ETH at around 67%, while retail investors have reduced exposure to roughly 37%
- Many believe that the infamous ‘alt season’ is nearly upon us
Institutions are still hoovering up Bitcoin and Ethereum, while retail investors are turning to alt coins, according to algorithmic trading firm Wintermute. The company reports that over the first half of 2025, a divide has grown between institutional and retail crypto buyers, with retail buyer believing that alt coins are set for a breakout. This belief seems to be fueled by Ethereum breaking a key resistance point against Bitcoin, following Bitcoin’s surge in dominance to an equally important level.
Institutions Banking on Bitcoin
In its report covering the first half of OTC trades of 2025, Wintermute revealed that institutions maintained 67% allocation to BTC and ETH, while retail dropped to 37% as they rotated into altcoins, highlighting a split in investment strategies. This marks the first such divergence since the last bull market, with institutions treating crypto more like macro assets while retail seeks excitement in smaller-cap tokens.
We can examine this divergence by looking at two critical charts. The first is the Bitcoin dominance chart, which has been inexorably rising in Bitcoin’s favour since the current bull market started in November 2022:
As we can see, Bitcoin’s dominance has been near total, rising towards the region where, historically, it has given way to a violent burst of alt coin mania; the fabled ‘alt season’. To assess how close alt coins are to taking the limelight from Bitcoin, we need to examine the ETH/BTC chart:
This chart shows that Ethereum is also lining up for a reversal against Bitcoin, having seemingly bottomed out and positioned itself for a run against the market leader. Such a move would bring all alt coins with it, bringing the chance for quick gains.
Market is Maturing, Says Wintermute
Evgeny Gaevoy, CEO of Wintermute, said that the divergence between retail and institutions isn’t a fleeting trend but is “a sign that we are experiencing a more mature, sophisticated and specialized crypto market”. Institutions are building positions with an eye on long-term macro trends, bolstered by ETF inflows and treasury strategies, while retail continues exploring new narratives like DeFi, DePIN and memecoins in order to make a quick buck).
This split underscores how crypto is evolving from a unified asset class into a market of specialists, with institutions anchoring in blue chips and retail fueling the chase for the next breakout alt.
