Wall Street’s Crypto Craze Pushes OTC Trading To Soar In 2024
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The cryptocurrency over-the-counter (OTC) market grew a lot in 2024, with trading volumes jumping more than twice as much. This growth was because top financial companies started using crypto more, and market conditions were good.
The total OTC trading activity rose 106% compared to the previous year. Stablecoins saw an even bigger jump of 147%, as per a study of 4 million spot trades carried out by Finery Markets.
Bitcoin And Ethereum ETFs Had A Major Market Impact
According to reports, the world of institutional crypto trading changed a lot in 2024, hitting a big moment when Bitcoin’s price rose more than $100,000 in December. This big step forward matched up with the exciting debut of Bitcoin and Ethereum ETFs, which shook up the structure of the market. U.S. Bitcoin ETF cash inflows zoomed past those of gold ETFs, making it the best launch of a traded product ever, according to Finery Markets.
Traditional financial companies made a big turn in how they saw digital money, switching from doubt to getting on board. By the last quarter of the year, after the elections, the market grew a lot. Bitcoin trading grew 80% compared to year before, Ethereum trading went up 187%, and stablecoin trading jumped 191%.
The year kept climbing steadily, with every quarter bringing its own special changes. The fourth quarter had the best performance with a 177% increase in OTC trading from the previous year.
Finery Markets noted that Q4 trading went way beyond any other quarter. Q2, helped by the success of BTC ETF debuts, was the only other period to see three-digit growth of 110%. Q1 and Q3 came next with growth rates of 80% and 78%, in that order.
Stablecoins Overtook Visa In Transaction Volume In 2024
The company also announced that it is working with Wintermute, an international algorithmic trading company. Wintermute pulled off the first RFQ transaction on Finery Markets’ crypto ECN platform in November 2024.
Konstantin Shulga, the Chief Executive Officer and Co-Founder Finery Markets noted that the big interest from institutions didn’t surprise the firm at all. He added that the team has built its trading system right from the start to handle the needs of these players, knowing they’d join in sooner or later.
Stablecoins became an important link between old and new finance in 2024. Their trading numbers shot past those of Visa, showing how vital they are in helping global business run smoothly, per the reports. The 147% growth shows that old banking systems can’t keep up with modern market demands.
