Crypto OTC spot trades boomed 95% in H1 2024: report

Demand for institutional cryptocurrency OTC services and other institutional offerings has surged with digital asset prices and the advent of Wall Street.

According to Finery Markets, institutional over-the-counter (OTC) spot trading volume increased by nearly 95% year-on-year in the first six months of 2024. The data was analyzed from more than two million transactions executed through brokers, OTC desks and other entities including hedge funds.

This year saw significant growth in the second quarter, with volumes up 110% YoY in Q2 and reaching 158% in April.

Institutional OTC crypto trading volume surges in H1 2024 Bitcoin rally boosts institutional crypto interest

At the time, spot Bitcoin (BTC) ETFs had been trading for over three months, with Bitcoin hitting a new all-time high in March. Speculation around spot Ethereum (ETH) ETFs has also hit crypto markets as the next move for Wall Street stakeholders.

BTC’s ATH fee and spot ETF flows are likely stimulating demand for institutional crypto products, analysts at Finery Markets noted. More is expected on this front, as the effects of ETF markets typically take up to nine months for TradFi players to fully embrace new offerings.

Interest in blockchain-based digital assets is evident as crypto-to-crypto trading has increased by 50% YoY, while crypto-to-fiat activity has fallen by 12% since the beginning of the year.

The trend suggests that investors are staying in the nascent industry despite recent volatility and short-term price action. Stablecoins have also taken a slice of the pie. Fiat-pegged tokens like Tether’s USDT have nearly tripled in trading volume year-over-year, according to Finery Markets

Ethereum ATH is inevitable

Experts at the capital markets data provider predict that Ethereum will see similar price strength to Bitcoin following spot BTC ETF approvals in January.

Institutions are expecting the green light for spot Ether ETFs before the summer is out, as U.S. Securities and Exchange Commission Chairman Gary Gensler suggested at a Congressional hearing in June. ETF veterans like Eric Balchuns also predict spot Ethereum funds will launch next week. Ahead of the widely anticipated development, Ethereum trading volumes are up nearly 32%