Over-the-counter (OTC) trading volumes in the crypto market have experienced a significant uptick, attributed in part to the recent election results and rising prices.
Over-the-counter (OTC) trading volumes in the crypto market have experienced a significant uptick, attributed in part to the recent election results and rising prices. Crypto trading firms report that clients are increasingly diversifying their portfolios, exploring altcoins beyond the traditional Bitcoin and Ethereum.
Tim Ogilvie, head of institutional trading at Kraken, noted a dramatic 220% year-over-year increase in OTC trading volumes. Other firms, including Wintermute and GSR, have observed similar trends, indicating a robust recovery in trading activity.
Jake Ostrovskis of Wintermute explained that the market had been relatively quiet until the election when many participants sought to position themselves ahead of the results.
BitGo, a crypto custodian that launched its OTC trading desk in early 2024, reported that two-thirds of its trading volume has occurred in the last three months, closely tied to the election outcome.
Brett Reeves, head of Go Network at BitGo, emphasized the importance of the U.S. market in shaping crypto trading dynamics.
As clients show a greater willingness to take on risk, there is a noticeable shift towards assets like Solana, BNB, and Aave, which are gaining traction among institutional investors. Liquidity remains a key factor, as institutions often prioritize trading in the most liquid assets.
Looking ahead, BitGo's Reeves anticipates sustained demand for Bitcoin and Ethereum, with the potential for additional ETFs, possibly including assets like Solana or XRP.
The maturation of the derivatives market is also expected to play a crucial role, as institutions seek hedging solutions amid increased trading activity.
Overall, the recent surge in OTC trading volumes reflects a broader trend of renewed interest and engagement in the crypto market, signaling a potential shift in investor behavior as 2025 approaches.
Crypto OTC Trading Volumes Surge Following Election Results
Over-the-counter (OTC) trading volumes in the crypto market have experienced a significant uptick, attributed in part to the recent election results and rising prices. Crypto trading firms report that clients are increasingly diversifying their portfolios, exploring altcoins beyond the traditional Bitcoin and Ethereum.
Tim Ogilvie, head of institutional trading at Kraken, noted a dramatic 220% year-over-year increase in OTC trading volumes. Other firms, including Wintermute and GSR, have observed similar trends, indicating a robust recovery in trading activity.
Jake Ostrovskis of Wintermute explained that the market had been relatively quiet until the election when many participants sought to position themselves ahead of the results.
BitGo, a crypto custodian that launched its OTC trading desk in early 2024, reported that two-thirds of its trading volume has occurred in the last three months, closely tied to the election outcome.
Brett Reeves, head of Go Network at BitGo, emphasized the importance of the U.S. market in shaping crypto trading dynamics.
As clients show a greater willingness to take on risk, there is a noticeable shift towards assets like Solana, BNB, and Aave, which are gaining traction among institutional investors. Liquidity remains a key factor, as institutions often prioritize trading in the most liquid assets.
Looking ahead, BitGo's Reeves anticipates sustained demand for Bitcoin and Ethereum, with the potential for additional ETFs, possibly including assets like Solana or XRP.
The maturation of the derivatives market is also expected to play a crucial role, as institutions seek hedging solutions amid increased trading activity.
Overall, the recent surge in OTC trading volumes reflects a broader trend of renewed interest and engagement in the crypto market, signaling a potential shift in investor behavior as 2025 approaches.
