The institutional over-the-counter crypto market posted a major expansion in the first half of 2024, with spot transaction volume rising 95% year over year, according to a report from Finery Markets. Based on an analysis of roughly two million institutional spot trades executed during H1 2024 and compared with the same period in 2023, the report points to a clear acceleration in professional participation across digital asset markets.
ETF approvals helped unlock institutional activity
One of the central drivers behind the surge was the changing market backdrop after the approval of spot bitcoin ETFs. Those products gave traditional investors and financial firms a more familiar route into crypto exposure, while also increasing overall market engagement. In that setting, OTC desks and institutional liquidity providers appear to have played a larger role in handling block-sized flows and supporting execution outside public exchanges.
The report’s findings align with broader signs of institutional absorption in the market. A recently cited industry example showed that institutional liquidity providers and OTC desks absorbed 88% of Germany’s bitcoin sales, underscoring how important off-exchange venues have become for processing large transactions without causing as much visible market disruption.
Ethereum participation broadened beyond bitcoin-only exposure
While bitcoin remains the core institutional gateway asset, the report also highlighted a notable increase in ethereum activity. Finery Markets said ethereum trading volumes rose 32% in the first half of 2024 compared with the same period a year earlier. That trend suggests institutional interest is gradually widening beyond bitcoin and into a broader set of digital assets.
This matters because institutional adoption often develops in stages. Early allocation tends to center on the most liquid and widely recognized asset, but once infrastructure improves and comfort with execution grows, market participants begin exploring additional assets and strategies. Rising ETH volumes therefore point not only to asset-specific interest, but also to a more mature institutional engagement model.
April stood out as a peak month for OTC growth
Monthly performance data in the report showed that April 2024 was especially strong, with transaction volume climbing 158% year over year. That spike followed a period of ETF-related approvals and heightened market attention, which appears to have translated into stronger deal flow through OTC channels.
Although growth moderated somewhat in May and June, Finery Markets said the broader trend remained positive. In other words, the second-quarter slowdown did not reverse the expansion seen earlier in the year. Instead, it suggested that institutional demand was not limited to a one-off reaction, but had continued at a higher base level than in 2023.
Trading patterns shifted toward crypto-to-crypto execution
Beyond aggregate volume, the report also showed a meaningful change in the composition of OTC flows. Crypto-to-crypto trades increased 50% year over year, while crypto-to-fiat pairs declined 12% during the first six months of 2024 versus the same period in 2023.
That shift may indicate that institutions are becoming more active in portfolio rotation, treasury management, and relative-value positioning inside the digital asset ecosystem itself. Rather than simply entering or exiting via fiat rails, participants may be using OTC venues more frequently to move between crypto assets directly, seek better execution for large swaps, or manage balances across strategies and counterparties.
The decline in crypto-fiat pairs does not necessarily imply reduced institutional interest. Instead, it may reflect a market structure in which more capital is already resident within the crypto ecosystem, allowing firms to transact directly in digital assets instead of converting through cash at every step.
Stablecoin transaction activity surged 2.6x
Another major theme in the report was the rise of stablecoins. Finery Markets said transactions involving stablecoins across all blockchains and layers increased by 2.6 times year over year. This is a significant development because stablecoins increasingly serve as a settlement layer, liquidity tool, and operational bridge for institutional participants.
In OTC markets, stablecoins can streamline execution and reduce friction when moving value between venues, strategies, and counterparties. Their growing use across multiple chains and infrastructure layers also reflects the market’s preference for speed, flexibility, and around-the-clock settlement. For institutions, that can make stablecoins a practical component of both trading and liquidity management.
Regulatory clarity and new ETFs could extend the trend
Looking ahead, the report maintained an optimistic tone on digital asset adoption. Expectations for additional ETF approvals, including products tied to ether and potentially other cryptocurrencies, are seen as possible catalysts for further growth in institutional participation. As investment vehicles become more standardized and accessible, more traditional firms may find it easier to justify operational, compliance, and capital commitments to the sector.
The regulatory environment was also cited as becoming more favorable. Clearer rules do not remove all market risks, but they can lower uncertainty for banks, brokers, asset managers, and other professional firms evaluating crypto market entry. In practice, that tends to support stronger infrastructure buildout, more consistent liquidity, and greater confidence in transaction workflows such as OTC execution.
A sign of a more mature institutional market
Overall, the Finery Markets data paints a picture of an OTC market that is not only growing rapidly, but also evolving in structure. The 95% year-over-year increase in spot volume, the 32% rise in ethereum trading, the 50% gain in crypto-to-crypto trades, and the 2.6x jump in stablecoin transactions all point to a market that is becoming broader and more sophisticated.
For the industry, this matters because OTC venues often serve as the preferred execution channel for larger and more complex institutional flows. Their growth can reveal how deep professional demand really is beneath the headline price action seen on public exchanges. If ETF momentum continues and regulation becomes more predictable, H1 2024 may prove to be an early marker of a longer institutional expansion cycle in crypto trading.