Market maker Wintermute has reported a fourfold surge in over-the-counter (OTC) crypto trading volumes in 2024, driven chiefly by institutional demand.

2024 Wintermute OTC year in review

Institutional demand propelled our OTC trading volumes to quadruple in 2024, marking a defining year for crypto markets

From institutional engagement to market structure transformation, here're the key trends our OTC desk observed in 2024 ↓ pic.twitter.com/yInG6cPLcd
— Wintermute (@wintermute_t) January 17, 2025

According to its annual report, the number of OTC deals soared by 250%, while total OTC volume jumped 313%—eclipsing the 142% growth on centralized exchanges. The average transaction size rose by 17%.

Spot OTC desk growing alongside institutional demand

‣ 946 unique pairs (up 64% from 2023)
‣ Average trade size up 17% → signaling institutional-sized trading

This combination of broader coverage and larger trades reflects a growing institutional presence pic.twitter.com/aEwVyb5LIN
— Wintermute (@wintermute_t) January 17, 2025

Daily OTC turnover peaked at $2.24 billion, surpassing the 2023 weekly record of $2 billion.

Wintermute attributes the growth to heightened institutional interest, fueled by the launch of spot crypto ETFs in the U.S. and an emerging regulatory framework fostering greater transparency.

“Regulatory clarity has acted as a catalyst for unprecedented institutional interest and capital inflows, fueling rapid expansion in a trading ecosystem increasingly integrated with traditional finance,” the firm stated.

Derivatives and Meme Tokens
Over-the-counter derivatives volume rose 300% “as institutions sought more advanced yield opportunities and risk management tools,” while the share of meme coins in Wintermute’s OTC mix climbed to 16.2% (up from 7.3% last year). Meanwhile, major cryptocurrencies’ share slipped from 67.9% to 58.7%.

Wintermute’s Outlook for 2025
The company predicts reduced price volatility, given rising trading volumes and liquidity, as well as steady demand for Bitcoin and Ethereum options. CEO Evgeny Gaevoy anticipates continued market expansion, fueled by crypto ETFs, corporate treasury holdings, tokenization, and structured products.

Wintermute also expects a more favorable U.S. regulatory climate under President-elect Donald Trump, including classifying cryptoassets as commodities rather than securities, and foresees a strategic Bitcoin reserve in the U.S.—and potentially in China, the UAE, and the EU.