Institutional crypto OTC volumes double in 2024 on Trump win, ETFs: Finery
Institutional crypto over-the-counter (OTC) trading volumes increased by 106% in 2024, driven by Donald Trump's US election win and demand for US spot crypto exchange-traded funds. The fourth quarter saw significant year-on-year increases: Bitcoin (80%), Ether (187%), and stablecoins (191%). The pro-crypto stance of the Trump administration contributed to these highs. The second quarter experienced a 110% rise, attributed to successful US spot Bitcoin ETF launches, while Q1 and Q3 saw increases of 80% and 78%, respectively. No month in 2024 recorded a decline in OTC trading volumes compared to 2023. Institutional interest shifted from skepticism to acceptance as the industry matured. Altcoin OTC trading volumes rose from 13% in 2023 to 29% in 2024, with Litecoin leading at a 149% increase. Crypto-to-crypto and crypto-to-stablecoin trading volumes surged by 440% and 311% in Q4. The outlook for 2025 suggests potential liquidity issues for tier 2 and tier 3 exchanges due to new regulations, while a pro-crypto administration could further boost institutional adoption.
