Wintermute Reports 240% Surge in Institutional Crypto Trading via OTC in 2024
Wintermute, a prominent crypto trading firm and market maker, has recently reported a staggering 240% surge in institutional crypto trading via over-the-counter (OTC) desks in 2024. This significant growth in activity from traditional financial institutions marks a notable shift in the landscape of crypto trading.
Increased Institutional Interest and Preference for Memecoins
According to the report released on January 17, 2025, traditional financial institutions played a crucial role in reshaping OTC trading throughout the year. Factors such as improved regulatory clarity and evolving policy frameworks have instilled confidence in these institutions, leading to a surge in trading volumes.
One key driver of this growth was the US Securities and Exchange Commission’s (SEC) approval of spot Bitcoin exchange-traded funds (ETFs) in January 2024, coupled with the election of a pro-crypto president in the US later that year. These developments paved the way for increased institutional participation in the crypto market.
Wintermute’s data also revealed a preference for discreet trades among retail brokers, with a substantial 549% growth rate indicating broader institutional interest. The demand for off-exchange liquidity has been on the rise, as institutions seek to execute large trades without causing significant market impact.
Focus on Memecoins and Challenges Faced by Crypto-Native Firms
In addition to increased trading volumes, traditional finance institutions have shifted their focus towards alternative assets such as “memecoins” and “currency networks.” While major cryptocurrencies experienced a slight decline in trading volume, memecoins saw a substantial 210% growth, capturing a larger share of Wintermute’s total OTC volumes.
This shift in preference reflects institutional investors’ willingness to explore higher-risk assets for potentially greater returns. However, as traditional financial institutions strengthen their presence in the OTC market, crypto-native firms are facing growing competition and pressure.
The entry of well-capitalized players with access to scale and competitive pricing has led to declining market shares for crypto-native firms, signaling intensified competition in the space. Despite these challenges, Wintermute’s record-breaking volumes in 2024 indicate a promising future for institutional crypto trading via OTC desks.