Markets
OTC Cryptocurrency Spot Trading Increased 95% in H1 2024: Report
Institutional demand for crypto OTC services and other enterprise offerings has grown alongside digital asset prices and the arrival of Wall Street.
Institutional over-the-counter (OTC) cash trading volume surged about 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 note During the second quarter of this year, volume increased 110% year-on-year in the second quarter and peaked at 158% in April.
Institutional OTC Crypto Trading Volume Growth in H1 2024
Bitcoin rally has boosted institutional interest in cryptocurrencies
At the time, spot Bitcoin (Bitcoin) The ETFs had been trading for over three months and Bitcoin had hit a new all-time high in March. Speculation around Ethereum spot (ETH) ETFs have also taken over the cryptocurrency markets as they represent the next step for Wall Street players.
Analysts at Finery Markets said that BTC’s ATH rate and spot ETF flows have most 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.
Interest in blockchain-based digital assets seems evident, as cryptocurrency-to-cryptocurrency trading is up 50% year-over-year, while cryptocurrency-to-fiat activity is down 12% year-to-date.
The trend indicates that investors have remained in the nascent industry despite recent volatility and short-term price movements. Stablecoins have also taken a piece of the pie. According to Finery Markets, fiat-pegged tokens like Tether’s USDT have nearly tripled their trading volume year over year
Ethereum’s ATH is inevitable
Experts at the financial markets data provider predict that Ethereum will see similar price strength to Bitcoin following BTC spot ETF approvals in January.
Institutions are already anticipating the green light for spot Ether ETFs before the end of the summer, according to Gary Gensler, chairman of the U.S. Securities and Exchange Commission. suggested at 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 highly anticipated development, Ethereum trading volumes have increased by about 32%