The over-the-counter (OTC) institutional cryptocurrency market saw a dramatic increase in spot transaction volume in the first half of 2024. A recent report by Finery Markets reveals a 95% year-over-year growth, highlighting a significant rise in institutional engagement.
OTC Crypto Spot Transaction Volume Surges 95% in H1 2024, Driven by Institutional Interest
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Institutional Interest Drives Massive Growth in Crypto’s Over-the-Counter Industry
The Finery Markets team analyzed data from two million spot trades conducted by institutions in the first half of 2024, compared to the same period in 2023. This strong growth is attributed to several factors, including the approval of spot bitcoin ( BTC) exchange-traded funds (ETFs) and increased institutional participation in cryptocurrency markets. Just recently, Bitcoin.com News reported that institutional liquidity providers and OTC desks absorbed 88% of Germany’s BTC sales.
Moreover, ethereum ( ETH) trading volumes, in particular, spike in 2024, reflecting the growing interest in digital assets beyond bitcoin. “Ethereum trading volumes rose by 32% in the first half of 2024 compared to the same period in 2023,” the Finery Markets report notes. Monthly performance data showed that April 2024 was a standout month, with a 158% year-over-year growth in transaction volumes.
This surge followed a series of ETF approvals, which spurred significant market activity. Although growth slowed slightly in May and June, the report shows the overall trend remained positive, indicating sustained interest from institutional investors. The report further noted a significant increase in crypto-to- crypto trades, while crypto-to-fiat pairs decreasing.
“Crypto-to- crypto trades demonstrated a 50% year-over-year growth. In contrast, crypto-to-fiat pairs decreased by 12% in the first six months of 2024 compared to the same period in 2023,” the Finery Markets OTC study states. “Amid rising interest in digital assets, transactions involving stablecoins across all blockchains and layers surged 2.6 times year-over-year.”
The outlook for digital asset adoption remains optimistic, with further ETF approvals anticipated to drive continued growth. Analysts expect the launch of additional ETFs for ether and other cryptocurrencies to bolster institutional involvement. The regulatory environment is becoming more favorable, providing traditional financial institutions with a clearer path to enter the crypto space.
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