Increased Activity in Over-the-Counter Crypto Trading for Wintermute by Fourfold
Wintermute's over-the-counter (OTC) crypto trading volumes experienced a significant surge in 2024, increasing by 313% year-over-year. This growth outpaced the broader exchange market, according to data from the company.
The boost in OTC trading volumes was driven by several interrelated factors. Institutional investors increasingly sought large, discreet trades outside public exchanges, fueling rapid OTC growth. By 2025, institutions allocated 67% of their crypto portfolios to Bitcoin (BTC) and Ethereum (ETH), while retail investors shifted toward altcoins, creating a clear divergence in market behavior.
Wintermute's ability to navigate evolving regulations and adapt to market trends was pivotal, allowing the firm to capture institutional flows as traditional finance entered the crypto space. The firm's advanced trading technology and deep liquidity provision attracted large counterparties seeking efficient execution of block trades.
Strategic expansion, notably into the U.S. market and through partnerships with key players, broadened Wintermute's client base and service offerings. The firm significantly expanded its derivatives offerings, with OTC derivatives trading volume rising over 300% in 2024.
In the first half of 2025, OTC trading volumes grew 2.4 times faster than centralized exchange (CEX) volumes, underlining the institutional preference for private, bulk transactions. By mid-2025, Wintermute’s OTC desk had virtually exhausted its ETH reserves due to aggressive accumulation by large players and ETF inflows, signalling unprecedented demand-side pressure and potential supply scarcity.
Looking ahead, institutional demand is expected to remain strong, especially as ETF products and regulated vehicles gain traction. Persistent demand from whales and ETFs, combined with staking reducing new ETH issuance, could exacerbate supply tightness, increasing price volatility and forcing institutions to explore alternative liquidity sources.
The divergence between institutional and retail behavior may deepen, with OTC desks like Wintermute’s becoming critical infrastructure for large players, while retail activity remains concentrated on exchanges and in altcoins. Firms may innovate around liquidity solutions—such as cross-desk aggregation, bespoke derivatives, and staking integrations—to meet institutional needs as traditional OTC channels face supply constraints.
Ongoing regulatory clarity (or lack thereof) will shape the scalability of OTC operations, especially in key markets like the U.S. and EU. Wintermute predicts that one leading asset manager will launch a memecoin ETF in 2025, and the share of meme coins in Wintermute's OTC mix increased to 16.2% in 2025 (up from 7.3% in 2024).
CEO Evgeny Gaevoy anticipates continued market expansion in 2025, driven by crypto ETFs, corporate treasury holdings, tokenization, and structured products. The total OTC volume in 2024 jumped by 313%, with daily OTC turnover peaking at $2.24 billion in 2024, surpassing the 2023 weekly record of $2 billion. The number of OTC deals in 2024 increased by 250%, and Wintermute's OTC crypto trading volumes quadrupled in 2024.
Sources: [1] Wintermute [2] CoinDesk [3] The Block [4] Cointelegraph
- Institutional investors allocated a significant portion of their crypto portfolios to Bitcoin and Ethereum, while retail investors gravitated towards altcoins, leading to a clear divergence in market behavior.
- The rapid growth of OTC trading in 2024 was driven by the preference of institutional investors for large, discreet trades outside public exchanges, and Wintermute's ability to navigate evolving regulations and adapt to market trends.
- Wintermute's strategic expansion, notably into the U.S. market and through partnerships with key players, and the firm's advanced trading technology and deep liquidity provision, attracted large counterparties seeking efficient execution, contributing to the surge in OTC crypto trading volumes.
