The results of the US elections and new Bitcoin records have led to a surge in turnover on OTC platforms. This was reported by Tim Ogilvie, head of Kraken’s institutional department, to The Block.
According to the top manager, the relevant indicator of the cryptocurrency exchange has increased by 220% compared to last year. Other interlocutors reported similar figures, in some cases returning to the records of 2021.
Wintermute trader Jake Ostrowskis noted that many clients began trading only after years of negotiations.
His colleague from GSR, Amber Lin, reported that firms are exploring opportunities beyond Bitcoin and Ethereum.
Ogilvie sees the situation similarly:
“Clients have developed an appetite for taking on more risk. They start with Bitcoin. Then they move to Ethereum. Then to Solana and further to some [altcoins].”
Ostrowskis also named BNB, TRON, Aave as priorities for users due to their acceptable liquidity.
The interlocutors expressed optimism regarding OTC trading in 2025.
“Compared to previous years, everything is much calmer because clients are confident in the preservation of this asset class after the launch of ETFs,” explained Brett Reeves, head of Go Network (a subsidiary of Bitgo).
The expert predicted an expansion of the range of exchange-traded funds based on cryptocurrencies. Among the contenders, he named XRP and Solana.
Ostrowskis pointed out the importance of developing the options market for institutions to hedge risks. In this regard, the role of OTC platforms, which can complement the capabilities of CEX, will increase.
According to the specialist, the launch of options on BTC-ETF has opened up the possibility for prime brokers to create cross-collateralized products, which was previously too costly due to high fees of underlying ETFs.
“This is very close to what the stock market looks like. It opens up a whole pool of capital,” he added.
In April, 57% of institutional investors intended to increase investments in digital assets, according to a Sygnum survey.
Earlier, analysts at Nickel Digital shared forecasts about the growth of investments by this category of market participants in cryptocurrencies.