Institutional crypto OTC trading volumes surge 106% in 2024

Institutional crypto over-the-counter (OTC) trading volumes have seen a remarkable increase of 106% in 2024, driven primarily by Donald Trump's election victory and rising demand for U.S. spot crypto exchange-traded funds (ETFs), according to Finery Markets.

The fourth quarter of 2024 recorded the most significant jump in trading activity, with Bitcoin (CRYPTO:BTC), Ether (CRYPTO:ETH), and stablecoin OTC volumes rising by 80%, 187%, and 191% year-on-year, respectively.

Finery Markets attributes this surge to the pro-crypto stance of the Trump administration, which has encouraged a favorable environment for crypto trading.

“Although comprehensive regulatory clarity is still pending, the pro-crypto stance of the Trump administration significantly fueled Q4 crypto spot trading to 2024 highs,” Finery noted.

In addition to the fourth quarter's performance, the second quarter also showed impressive growth, with OTC trading volumes rising by 110% year-on-year, largely due to successful Bitcoin ETF launches.

The first and third quarters recorded increases of 80% and 78%, respectively.

Interestingly, there was not a single month in 2024 where crypto OTC trading volumes declined compared to the previous year, indicating a growing preference among market participants for private trading methods over public exchanges.

The increase in institutional crypto OTC trading volumes reflects a broader shift among traditional financial institutions from scepticism to acceptance of digital assets as the industry matures.

Finery's data was derived from an analysis of four million spot trades on its platform throughout the year.

Moreover, altcoin OTC trading volumes are also on the rise, increasing their market share from 13% in 2023 to 29% in 2024.

Litecoin remains a leading altcoin among institutional investors, with a substantial increase of 149%.

Looking ahead to 2025, Finery anticipates that tier two and tier three centralised exchanges may face liquidity challenges due to regulatory changes in the European Union.

A more crypto-friendly administration could further enhance institutional adoption as global interest in digital assets continues to grow.