The trading volume of the over-the-counter (OTC) cryptocurrency market has recently surged significantly, driven by election results and price increases, prompting institutional investors to actively position themselves. Institutional risk appetite has increased, and innovations in derivatives and ETFs will be key to the next wave of growth. (Background: Bitcoin once fell below $60,000! The balance of miners in the OTC market skyrocketed, are bearish signals strong?) (Additional Background: Why does Ko Wen-je have a million cash flow stored in ATMs? Crypto experts say Chen Peiqi sells Bitcoin like OTC, but the logic is unreasonable). Recently, the trading volume in the OTC cryptocurrency market has spiked. Tim Ogilvie, head of institutional business at U.S. cryptocurrency exchange Kraken, stated: "In short, the OTC market is currently very popular. While price increases are important, the rise in trading volume is even more significant." According to him, Kraken's OTC trading volume has grown by 220% year-on-year. Jake Ostrovskis, an OTC trader at the well-known market maker Wintermute, also pointed out that while the mid-term market is relatively calm, prices rose during the election period, and participants have been actively entering the market. He said: "Some clients hesitated for years before the election, but after the results came out, they finally started to take action." Embert Lin, a trader at leading market maker GSR, added that the price increases of BTC, ETH, and altcoins have stimulated investors and project parties' enthusiasm for risk management and financial operations. He stated: "Many institutions and investors are also looking for investment opportunities beyond Bitcoin and Ethereum." What could the surge in OTC trading represent? As for the heated OTC market, it can, to some extent, represent an indicator of institutional entry, as institutions typically buy larger amounts. If they were to enter the secondary market directly, it could cause significant price fluctuations, so they prefer to trade through the OTC market. Investor risk appetite has increased. Additionally, it is worth noting that these OTC platforms indicate that current clients' risk appetite has clearly increased, not limited to Bitcoin and Ethereum, but also exploring other cryptocurrencies with ample liquidity. Ogilvie pointed out that the trading volume of Solana has surged recently, becoming a popular choice among risk assets. Ostrovskis from Wintermute also listed some mainstream cryptocurrencies in the market, including BNB, Tron, and Aave, due to their strong liquidity, attracting institutional investors to participate further. Outlook for 2025: Market Continues Robust Growth For the coming year, Brett Reeves from cryptocurrency custody firm BitGo predicts that demand in the OTC market will remain high, especially for Bitcoin and Ethereum trading. He stated: "The launch of ETFs has given this asset class greater legitimacy, which not only stabilizes the OTC market but also accelerates the overall adoption of cryptocurrencies." At the same time, Ostrovskis emphasized that the maturity of the derivatives market will be key to the next wave of growth. He pointed out: "The widespread use of hedging tools such as options allows institutions to better manage risks, especially in situations with limited liquidity." "Such products have gradually gained market attention and may become a core growth area in the cryptocurrency market in the future." Related Reports: Bitcoin once fell below $60,000! The balance of miners in the OTC market skyrocketed, are bearish signals strong? Why does Ko Wen-je have a million cash flow stored in ATMs? Crypto experts say Chen Peiqi sells Bitcoin like OTC, but the logic is unreasonable. Hong Kong cryptocurrency 'OTC currency dealers' will welcome licensing regulations: The Securities and Futures Commission may collaborate with customs to regulate "Bitcoin, Ethereum OTC market trading volume surges! Institutional investment wave floods in." This article was first published on BlockTempo (BlockTempo - the most influential blockchain news media).

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