Wintermute Reports 313% Increase in OTC Trade Volumes Driven by Institutions
In 2024, Wintermute reported a 313% increase in over-the-counter (OTC) trade volumes, significantly outpacing the broader crypto market's 142% growth. This surge is attributed to rising institutional interest and regulatory changes.
Key Highlights
- OTC trade volume reached a one-day high of $2.24 billion, surpassing the previous weekly record of $2 billion.
- Approval of spot Ethereum and Bitcoin ETFs has facilitated institutional investments.
- OTC derivatives volume rose by 300%, indicating demand for sophisticated financial products.
- Meme coins' share in OTC spot volume increased from 7.3% in 2023 to 16.2% in 2024.
- Bitcoin and Ethereum's market share declined from 67.9% to 58.7%.
Wintermute anticipates positive political changes under President-elect Donald Trump, which may reduce regulatory uncertainty. Trump's proposal for a national strategic Bitcoin reserve could influence global cryptocurrency policies.
Future Outlook
- Predicted classification of digital assets as commodities may enhance crypto's legitimacy.
- Forecasted increase in new crypto ETFs in 2025, including multi-asset ETFs targeting DeFi and meme coins.
- Potential for a memecoin ETF centered around Dogecoin, with Litecoin expected to launch the first altcoin ETF.
- Nasdaq has filed for a spot Litecoin ETF, marking progress for altcoin investment products.