Market maker Wintermute has reported an impressive OTC volume boost in 2024 amid a shift in institutional investor sentiment.
In 2024, the crypto market reached major milestones, and Wintermute, a top crypto market maker, has the numbers to prove it. According to The Block, the company saw a 313% increase in over-the-counter (OTC) trade volumes. Interestingly, this growth surpassed the overall crypto market’s expansion and was mainly fueled by a surge of institutional investors.
Institutional Push Fuels Wintermute OTC Surge
Wintermute’s year-end report revealed a remarkable 313% increase in OTC trade volumes. This is much higher than the 142% growth in the broader crypto market. The company also saw a 250% jump in trades compared to last year.
One standout moment for Wintermute was when its OTC trade volume hit a one-day high of $2.24 billion. Remarkably, this surpassed the $2 billion weekly record set in 2023. This surge is not just a sign of growing market interest but is also tied to significant regulatory shifts.
The approval of spot Ethereum and Bitcoin Exchange Traded Funds (ETFs) and more support for clearer rules have made it easier for institutional investors to enter the market. This development has paved the way for larger capital inflows.
Wintermute pointed out that these changes have sparked more involvement from institutional investors. This has helped crypto become more connected to traditional finance. A key trend Wintermute observed was the increasing demand for sophisticated crypto derivatives.
Reportedly, its OTC derivatives volume rose 300% as institutions sought more advanced products to manage risk and generate yield.
This demand shows that the market is maturing, with larger players seeking more specialized tools to adapt to the changing environment. Wintermute’s report showed that the share of meme coins in its OTC spot volume skyrocketed from 7.3% in 2023 to 16.2% in 2024.
In contrast, major virtual assets like Bitcoin BTC $108 442 24h volatility: 4.3% Market cap: $2.16 T Vol. 24h: $47.03 B and Ethereum ETH $4 307 24h volatility: 5.9% Market cap: $521.37 B Vol. 24h: $38.03 B saw a decrease in market share, falling from 67.9% to 58.7%.
This shift means meme coins, once considered a speculative asset class, are now becoming more mainstream in the crypto industry.
Shifting US Politics Poised to Propel Crypto to New Heights in 2025
Wintermute anticipates a positive political shift with President-elect Donald Trump’s arrival. His leadership is expected to reduce regulatory uncertainty, benefiting the crypto landscape.
One of Trump’s key promises is to establish a national strategic Bitcoin reserve. This move could drive other countries like China, the UAE, and Europe to follow.
Wintermute also believes the new administration will likely classify digital assets as commodities. If this happens, it will further cement crypto legitimacy in the financial system. Wintermute forecasts that 2025 will witness a surge in new crypto ETFs, expanding the market significantly. These will include multi-asset ETFs and those targeting specific sectors, such as decentralized finance and meme coins.
The firm even predicted that a memecoin ETF, possibly centered on Dogecoin, would become a reality. Meanwhile, Litecoin is on track to be the first altcoin to launch an ETF in 2025. Nasdaq recently filed the necessary forms for a spot Litecoin ETF, marking a significant step forward for altcoin-based investment products.
As reported by Coinspeaker, Eric Balchunas from Bloomberg pointed out that a Litecoin ETF is likely to succeed. The US Securities and Exchange Commission (SEC) once classified Litecoin as a commodity.
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