Institutions double down on BTC and ETH while retail turns to memecoins in 2025 bull run: Wintermute

A report from the crypto trading firm and market maker Wintermute found that retail investors and institutions significantly differed in their investment strategies during the bull run in the first half of 2025.

Institutions are doubling down on major cryptocurrencies like bitcoin and ethereum while retail investors opt for memecoins and other altcoins, according to a release shared with The Block. The move marks a notable shift in institutional and retail trading interests, which largely moved in sync for the past years, as institutions seek stable exposure while retail investors follow newer, if riskier, opportunities.

The disparity in majors allocation grew to a record 30 percentage points between institutions and retail traders. While institutions maintain majors allocations at 67%, largely through ETF inflows and other new accumulation vehicles, retail allocation into majors fell 9% to 37% as their interests pivoted to altcoins, the release continues.

"This divergence isn’t a temporary thing; it’s the sign that we are experiencing a more mature, sophisticated and specialized crypto market,” said Wintermute CEO and Founder Evgeny Gaevoy in a statement. "Investors are no longer chasing the same trend. Institutions are treating crypto as a macro asset, while retail traders continue to gravitate to innovation."

Institutions largely adopted derivatives in the first half of 2025 as potential tools for hedging, yield-generation, and capital-efficient exposure, with Wintermute finding over-the-counter (OTC) options volume soaring 412% compared to the first half of 2024.

Memecoins such as BONK, WIF, POPCAT, and other newer memecoins gained traction, though more established coins like DOGE and SHIB lost some dominance. Still, DOGE, SHIB, and PEPE comprise the top three memecoins by weight in the GMCI MEME Index.

As for what to watch out for in the second half of 2025, Wintermute notes that the potential decision on spot Dogecoin ETFs from the Securities and Exchange Commission in October could influence retail demand. Grayscale, REX-Osprey, and Bitwise have all filed for spot Dogecoin ETFs this year.

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