Markets
You Won’t Believe How Much Institutional Cryptocurrency Trading Has Exploded in 2024
The institutional over-the-counter (OTC) cryptocurrency market has seen a significant increase in the first half of 2024, with total spot transaction volumes increasing 95% year-over-year.
According to a new report from Finery Markets, which analyzed two million spot trades conducted by institutions, appetite for digital assets among institutional investors has grown significantly. This surge in activity follows recent approvals for crypto-related investment vehicles, including the successful launch of a Bitcoin ETF.
Ethereum, the second-largest cryptocurrency by market cap, saw its trading volumes increase by 32% in the first half of 2024 compared to the same period in 2023. The potential approval of Ethereum ETFs is expected to further spur institutional participation in the market.
Source: Finery Markets
“The recent approval of cryptocurrency-related vehicles has sparked institutional interest in long-term cryptocurrency adoption,” Antique markets commented in the report. “However, we believe that the full impact of ETF approvals on the market may not be fully realized until six to nine months later.”
The report also highlights a shift in trading patterns, with crypto-to-crypto trading showing 50% year-over-year growth. In contrast, crypto-to-fiat pairs declined 12% in the first six months of 2024. In particular, transactions involving stablecoins across all blockchains and layers increased 2.6x year-over-year.
Experts have recognized for several months now that without the support of institutional investors, Bitcoin volumes and prices would not have increased so significantly. For exampleThe cryptocurrency market has seen a substantial surge in value, from $1 trillion to $2.5 trillion from October 2023 to March 2024.
Altcoins on the Rise
While Bitcoin and Ethereal continue to dominate the space, the report indicates varying growth rates among altcoins. Tron (TRX) saw the most significant surge, up 202% year-over-year, followed by Binance Coin (BNB) at 129% and Litecoin (LTC) at 80%. However, Ripple (XRP) bucked the trend with an 18% decline.
“The growth rates observed in altcoins can largely be attributed to a low base effect resulting from a downturn in the first half of 2023, caused by the FTX crash and its subsequent impact on the cryptocurrency market through the first half of 2024,” Finery Markets added.
Source: Finery Markets
Cryptocurrency market growth accelerated in Q2 2024, reaching a 110% year-over-year increase in customer transaction volumes, up from 80% in Q1. April saw the growth rate peak at 158% year-over-year, following a 56% increase in January.
Despite the overall positive trend, institutional participation altcoins remained relatively low, with the top five alternative cryptocurrencies accounting for just 5.4% of total trading volume.
The report suggests that the changing regulatory environment is becoming more favorable to digital assets, providing traditional financial institutions with a clear path to enter the cryptocurrency sector using established financial instruments.
Antique markets
is the first crypto ECN to receive SOC 2 Type 1 certification. Earlier this year, Finery Markets has started a collaboration with Hidden RoadThe partnership features the incorporation of Finery Markets’ leading product, FM Liquidity Match, into Hidden Road’s operations, which primarily involve prime brokerage services for spot cryptocurrency transactions.
The institutional over-the-counter (OTC) cryptocurrency market has seen a significant increase in the first half of 2024, with total spot transaction volumes increasing 95% year-over-year.
According to a new report from Finery Markets, which analyzed two million spot trades conducted by institutions, appetite for digital assets among institutional investors has grown significantly. This surge in activity follows recent approvals for crypto-related investment vehicles, including the successful launch of a Bitcoin ETF.
Ethereum, the second-largest cryptocurrency by market cap, saw its trading volumes increase by 32% in the first half of 2024 compared to the same period in 2023. The potential approval of Ethereum ETFs is expected to further spur institutional participation in the market.
Source: Finery Markets
“The recent approval of cryptocurrency-related vehicles has sparked institutional interest in long-term cryptocurrency adoption,” Antique markets commented in the report. “However, we believe that the full impact of ETF approvals on the market may not be fully realized until six to nine months later.”
The report also highlights a shift in trading patterns, with crypto-to-crypto trading showing 50% year-over-year growth. In contrast, crypto-to-fiat pairs declined 12% in the first six months of 2024. In particular, transactions involving stablecoins across all blockchains and layers increased 2.6x year-over-year.
Experts have recognized for several months now that without the support of institutional investors, Bitcoin volumes and prices would not have increased so significantly. For exampleThe cryptocurrency market has seen a substantial surge in value, from $1 trillion to $2.5 trillion from October 2023 to March 2024.
Altcoins on the Rise
While Bitcoin and Ethereal continue to dominate the space, the report indicates varying growth rates among altcoins. Tron (TRX) saw the most significant surge, up 202% year-over-year, followed by Binance Coin (BNB) at 129% and Litecoin (LTC) at 80%. However, Ripple (XRP) bucked the trend with an 18% decline.
“The growth rates observed in altcoins can largely be attributed to a low base effect resulting from a downturn in the first half of 2023, caused by the FTX crash and its subsequent impact on the cryptocurrency market through the first half of 2024,” Finery Markets added.
Source: Finery Markets
Cryptocurrency market growth accelerated in Q2 2024, reaching a 110% year-over-year increase in customer transaction volumes, up from 80% in Q1. April saw the growth rate peak at 158% year-over-year, following a 56% increase in January.
Despite the overall positive trend, institutional participation altcoins remained relatively low, with the top five alternative cryptocurrencies accounting for just 5.4% of total trading volume.
The report suggests that the changing regulatory environment is becoming more favorable to digital assets, providing traditional financial institutions with a clear path to enter the cryptocurrency sector using established financial instruments.
Antique markets
is the first crypto ECN to receive SOC 2 Type 1 certification. Earlier this year, Finery Markets has started a collaboration with Hidden RoadThe partnership features the incorporation of Finery Markets’ leading product, FM Liquidity Match, into Hidden Road’s operations, which primarily involve prime brokerage services for spot cryptocurrency transactions.