Markets
Cryptocurrency OTC Spot Trading Increased 95% in H1 2024: Report
Institutional demand for OTC cryptocurrency services and other corporate offerings has increased alongside digital asset prices and the arrival of Wall Street.
Institutional over-the-counter (OTC) spot trading volume increased approximately 95% year-over-year in the first six months of 2024, according to Finery Markets. The data was analyzed from more than two million trades executed through brokers, OTC desks, and hedge funds, among others.
Massive growth has been noticed during the second quarter of this year. Volume increased 110% year-over-year (YoY) in Q2 and peaked at 158% in April.
Institutional OTC Crypto Transaction Volume Growth During H1 2024
Bitcoin’s rally has spurred institutional interest in cryptocurrencies
At the moment, locate Bitcoin (BTC) ETFs had been trading for over three months and Bitcoin had hit a new all-time high in March. Speculation on the Ethereum spot (ETH) ETFs have also taken over the cryptocurrency markets, representing the next move for Wall Street shareholders.
Finery Markets analysts said BTC’s ATH charge and spot ETF flows have likely galvanized institutional demand for crypto products. More is expected on this front, as ETF market impacts typically take up to nine months for TradFi players to fully adopt new offerings.
The interest in blockchain-based digital assets is evident, as cryptocurrency-to-cryptocurrency trade is up 50% year-over-year, while crypto-to-fiat trade has fallen 12% since the beginning of the year.
The trend indicates that investors have remained in the nascent sector despite recent volatility and short-term price action. Stablecoins have also grabbed a piece of the pie. According to Finery Markets, fiat-pegged tokens like Tether’s USDT have nearly tripled in transaction volume year-over-year.
Ethereum ATH inevitable
Experts at the capital markets data provider predict that Ethereum will see similar price strength to Bitcoin following the approval of spot BTC ETFs in January.
Institutions are already anticipating a green light for spot Ether ETFs before the end of the summer, U.S. Securities and Exchange Chairman Gary Gensler says. suggested during a congressional hearing in June. ETF veterans like Eric Balchuns have also speculated that Ethereum spot funds will debut as early as next week. Ahead of the widely anticipated development, Ethereum trading volumes have surged about 32%