Institutional Crypto OTC Volume to Double by 2024

According to Finery Markets, the decentralized (OTC) cryptocurrency trading volume of institutions increased by 106% in 2024 - mainly due to the victory of Republican candidate Donald Trump in the US election and the demand for US spot ETFs. The fourth quarter witnessed the largest jump, with OTC trading volume of Bitcoin, Ether and stablecoins increasing by 80%, 187% and 191% respectively compared to the same period last year. This occurred against the backdrop of Trump's victory and the new administration's pro-cryptocurrency stance, the cryptocurrency OTC infrastructure company said. While there is still no comprehensive regulatory clarity, the Trump administration's pro-cryptocurrency stance has significantly boosted the spot cryptocurrency trading activity in Q4 to the highest level of 2024. Q2 increased by 110% year-on-year - Finery believes this was due to the "successful" launch of a US Bitcoin ETF spot - while Q1 and Q3 also saw impressive OTC trading volume increases of 80% and 78% respectively. There was no month in which the cryptocurrency OTC trading volume decreased from 2023 - indicating that market participants are gradually shifting towards more private trading methods rather than using public exchanges. The increase in institutional cryptocurrency OTC trading volume is largely due to many TradFi leaders shifting their stance from "skepticism to neutrality or acceptance as the industry matures", Finery said. Finery said they collected data by analyzing 4 million spot trades executed on their platform in 2024 from market makers, payment service providers, brokers, over-the-counter desks, hedge funds and custodians. However, Finery said the cryptocurrency OTC market is still understudied due to its "opaque nature" and decentralized data being more difficult to collect. Finery also noted that OTC trading volume for altcoins is "increasing" - growing its market share from 13% in 2023 to 29% last year. FOLLOW US ON FACEBOOK | TELEGRAM | TWITTER Disclaimer: All content on this website is for informational purposes only and is not investment advice. Readers should do their own research before making investment decisions. We are not responsible, directly or indirectly, for any damage or loss caused by or in connection with the use of or reliance on any content you read on this website.