Is Crypto Maturing While Stocks Become Retail-Driven?
The post Is Crypto Maturing While Stocks Become Retail-Driven? appeared on BitcoinEthereumNews.com.
Retail investors captured about 20% of US stock trading volume in Q3 2025, the second-highest level ever recorded. At the same time, the crypto market is experiencing the opposite trend, with institutional capital dominating as retail participation declines. This divide between equities and digital assets raises important questions about market maturity, volatility, and the future direction of both asset classes as 2026 approaches. Sponsored Sponsored Stocks Go Retail While Crypto Turns Institutional The rise in retail investor activity marks a major change in equity market structure. According to data shared by the Kobeissi Letter, individual investors reached their second-highest trading share in history during Q3 2025, nearing the peak of the Q1 2021 meme stock surge. Before 2020, average retail participation was about 15% for several years. Thus, this makes the current 20% figure quite significant. Retail Investors Now Command 20% of US Stock Trading Volume. Source: X/The Kobeissi Letter Retail participation has surpassed individual institutional categories. Long-only mutual funds and traditional hedge funds each accounted for about 15% of trading volume last quarter, or half their 2015 share. Furthermore, all fund categories, including quants, together made up just 31% in Q3. “Retail investors are taking over the market at a historic pace,” The Kobeissi Letter stated. Meanwhile, the crypto market now shows the reverse of the stock market’s composition. While retail investors fueled past bull runs, 2025 saw a clear shift to institutional dominance. JPMorgan, in its recent note, highlighted that retail participation in the market has fallen. According to the bank, “Crypto is moving away from resembling a venture capital style ecosystem to a typical tradable macro asset class supported by institutional liquidity rather than retail speculation.” Sponsored Sponsored It is worth noting that the crypto market’s drawdown has reduced demand for exchange-traded funds (ETFs) and put substantial…
Filed under: News - @ December 15, 2025 1:37 pm