OTC platforms report record trading volumes
Date: 2024-12-26 Author: Gabriel Deangelo Categories: BUSINESS
Trading volumes on the Kraken platform increased by 220% compared to last year. According to other market participants, some indicators have returned to the levels of the record 2021.
Jake Ostrovskis of Wintermute emphasized that many clients have become active after many years of discussions. Embert Lin of GSR noted that companies are starting to expand their interests beyond Bitcoin and Ethereum.
According to Ogilvy, clients are increasingly interested in risk assets: first they work with Bitcoin, then move on to Ethereum, and then Solana and other altcoins. Ostrovskis also noted the popularity of BNB, TRON and Aave due to their liquidity.
Market participants express confidence in the further development of OTC trading in 2025. Brett Reeves, head of Go Network (a division of Bitgo), noted that the emergence of crypto ETFs has strengthened investor confidence in this asset class. He expects the emergence of new ETFs based on cryptocurrencies such as XRP and Solana.
Ostrovskis drew attention to the importance of developing the options market to reduce the risks of institutional players. He added that OTC platforms can complement centralized exchanges (CEX) in this direction.
The launch of BTC ETF options, according to him, has opened up the opportunity for brokers to offer more complex financial products with cross-collateral. This became possible due to the reduction of commissions, which previously made such operations unprofitable.
“We are approaching a model similar to the stock market. This opens up new opportunities for raising capital,” Ostrovskis said.
According to a Sygnum survey, 57% of institutional investors plan to increase their investments in digital assets. Nickel Digital analysts also previously predicted an increase in institutional players' interest in cryptocurrencies.
