The over-the-counter (OTC) trading landscape experienced significant transformation in 2022, as reported by Finery Markets, an OTC infrastructure firm. The surge in trading volume can be attributed to various influential factors, most notably the election win of Donald Trump and the increasing demand for spot crypto exchange-traded funds (ETFs).
This past year has seen a remarkable uptick in OTC trading activities, reflecting a growing interest in cryptocurrency markets and alternative investment avenues. Investors, both institutional and retail, turned to OTC desks to facilitate large transactions outside of traditional exchange environments, aiming to minimize price slippage and maintain anonymity.
Donald Trump’s re-election campaign reignited investor confidence, leading to heightened market activity. The political climate, often regarded as a major influencer of financial markets, played a crucial role in shaping investor sentiment, resulting in increased trading volumes.
Moreover, the expanding popularity of spot crypto ETFs has emerged as a game-changer in the OTC space. As investors seek exposure to cryptocurrencies through regulated financial products, the demand for OTC transactions surged, allowing for the seamless execution of trades in a manner that aligns well with the growing institutional acceptance of digital assets.
In conclusion, 2022 marked a pivotal year for OTC trading, driven by an array of factors that catalyzed increased investor participation. As we advance into 2023, the trends observed during the past year suggest that OTC markets will continue to play a vital role in shaping the dynamics of cryptocurrency trading.
