The institutional over-the-counter crypto market posted a sharp expansion in the first half of 2024, underscoring how quickly professional investors are increasing their exposure to digital assets. According to a recent report from Finery Markets, OTC spot transaction volume among institutions climbed 95% year over year in H1 2024, pointing to a material increase in institutional engagement across the sector.
Finery Markets data highlights broad-based growth
The report was based on an analysis of two million spot trades executed by institutions during the first six months of 2024 and compared with the same period in 2023. Finery Markets attributed the surge to several converging forces, most notably the approval of spot bitcoin exchange-traded funds in the United States and the resulting rise in institutional participation throughout crypto markets.
For institutional players, OTC venues remain a critical part of market structure. They are widely used for large transactions, tailored execution, and liquidity access that may be difficult to source efficiently on public exchanges. In that context, a near doubling in spot volume suggests not just speculative interest, but a deeper operational and strategic commitment from market participants that increasingly include traditional financial firms and professional trading desks.
ETF approvals appear to have acted as a major catalyst
The timing of the growth is notable. Spot bitcoin ETF approvals helped reshape the narrative around digital assets in early 2024, making the asset class more accessible and more legible to institutions that had previously remained cautious. The report suggests that these approvals contributed meaningfully to higher OTC activity as investors adjusted allocations, hedged exposures, and sought liquidity in size.
The article also referenced an earlier market development in which institutional liquidity providers and OTC desks reportedly absorbed 88% of Germany’s bitcoin sales. While that figure comes from separate reporting, it reinforces the idea that OTC infrastructure is playing an increasingly important role in digesting large flows without causing the same degree of disruption that might be seen on open exchanges.
Ether volumes and non-bitcoin demand continue to rise
Although bitcoin remains central to institutional adoption, the Finery Markets study indicates that demand is spreading beyond a single asset. Ethereum trading volumes rose 32% in the first half of 2024 compared with the same period a year earlier, signaling that institutional investors are broadening their activity within digital assets rather than simply concentrating on BTC.
This is an important shift in market behavior. Growing ether participation may reflect rising interest in a wider crypto investment universe, especially as investors prepare for the possibility of additional ETF products linked to assets beyond bitcoin. Even without making assumptions beyond the report, the data clearly shows that institutional trading appetite is becoming more diversified.
April was the standout month of the half
On a monthly basis, April 2024 stood out with a 158% year-over-year increase in transaction volumes. That spike followed a period of strong ETF-related momentum and appears to capture the peak of activity tied to improving sentiment and increased institutional deployment.
Finery Markets noted that growth eased somewhat in May and June, but the bigger picture remained constructive. In other words, the market did not reverse after the April surge; instead, it continued to show positive year-over-year expansion, suggesting that institutional interest was not merely a short-lived reaction to headline events.
Trading patterns are changing inside the OTC market
One of the more revealing aspects of the report is the shift in transaction mix. Crypto-to-crypto trades increased 50% year over year, while crypto-to-fiat pairs fell 12% during the first half of 2024 compared with the same period in 2023.
That divergence suggests the institutional OTC market is evolving. Rather than using OTC desks primarily for on-ramping from fiat into crypto, institutions may be engaging more actively in portfolio rebalancing, cross-asset positioning, and internal rotation among digital assets. The report does not speculate on exact motives, but the directional shift is clear: activity within the crypto ecosystem itself is gaining relative importance.
Stablecoins emerge as a major driver of market activity
The report also points to a major increase in stablecoin usage. Transactions involving stablecoins across all blockchains and layers surged 2.6 times year over year. That kind of growth is significant because stablecoins often sit at the center of institutional settlement flows, collateral management, liquidity transfer, and execution strategies.
As more institutions enter the market, stablecoins can serve as a practical bridge between trading venues, counterparties, and asset classes. The sharp rise described by Finery Markets suggests that stablecoin infrastructure is becoming even more integral to the OTC ecosystem, especially in a market where speed, settlement certainty, and capital efficiency matter.
Outlook remains constructive as regulation becomes clearer
Looking ahead, the report maintains an optimistic view on digital asset adoption. Finery Markets expects that further ETF approvals could support additional growth, especially if products linked to ether and other cryptocurrencies continue to move forward. More institutional products would likely deepen participation and bring new categories of investors into the market.
The report also notes that the regulatory backdrop is becoming more favorable. Clearer rules and more defined pathways for participation may lower barriers for traditional financial institutions that have been waiting for stronger legal and compliance frameworks before entering crypto more aggressively.
Overall, the H1 2024 data presents a picture of a market that is becoming more institutionalized. A 95% increase in OTC spot volume, stronger ether activity, accelerating stablecoin flows, and a shift toward crypto-to-crypto trading all point to a maturing market structure. While growth rates may vary from month to month, the underlying trend described by Finery Markets suggests that institutional crypto adoption is expanding in both scale and complexity.