Cryptocurrency Market Sees Institutional Shift in 2024

According to Odaily, the "Wintermute OTC: 2024 Review and 2025 Outlook" report highlights significant changes in the cryptocurrency market structure in 2024, driven by institutional-grade products, deeper market liquidity, and increased regulatory transparency. This institutional shift is mirrored in Wintermute's OTC trading activities, which have experienced similar momentum. The report examines trends that influenced the market in 2024 to identify patterns that may continue into 2025. Key highlights from the report include a 313% increase in Wintermute's OTC trading volume, surpassing the overall cryptocurrency exchange growth of 142%. Over 300 new independent trading pairs were introduced for the first time, and the average trade size grew by 17%, indicating a shift towards larger institutional block trades. Traditional financial institutions saw a 240% increase in OTC trading volume, while derivatives trading volume surged by over 300%. Contracts for difference (CFDs) accounted for 4.3% of Wintermute's total OTC trading volume within just nine months. Notably, meme coins unexpectedly became a focal point for traditional finance, with their OTC trading volume rising by 210%, making up 16.2% of Wintermute's total trading volume, up from 7.3% in 2023. This shift suggests that institutions are exploring high-risk assets in pursuit of higher returns, despite a slight decline in major cryptocurrency trading activity. These changes reflect a broader trend of increasing institutional participation and a maturing market structure. More institutions are turning to OTC trading to minimize market impact and avoid capital inefficiencies associated with holding assets on exchanges. Their growing involvement is reshaping counterparty dynamics and intensifying competition, making the OTC market an increasingly important venue for institutional cryptocurrency trading. Institutional adoption is expected to accelerate in 2025, enhancing the demand for scalable liquidity solutions, evolving derivatives markets, and efficient trade execution. Macro trends and regulatory clarity will shape execution strategies and drive further integration between cryptocurrency and traditional financial markets.