Crypto trading firm Wintermute stated that cryptocurrencies will be more deeply integrated into the traditional financial system this year through exchange-traded funds (ETFs) and institutional investments.
New Strategic Moves
The firm predicted that a major corporate event, such as an acquisition or merger, would result in stablecoins. He also predicts that the US will begin consultations to create a strategic Bitcoin reserve, and China, the UAE and Europe will follow suit.
Wintermute predicts that a publicly traded company will buy Ether (ETH) by selling debt or equity, a move that will mimic MicroStrategy’s (MSTR) Bitcoin buying policy. It also determined that a systemically important bank will offer spot crypto trading to its customers.
Market Growth and Product Development
Last year, along with the significant increase in crypto demand, Bitcoin (BTC) $103,062.1 Institutional volume of over-the-counter (OTC) trading more than tripled with the approval of ETFs and the launch of Ether (ETH) ETFs. It was announced in the report that the average OTC trade size increased by 17% and the total volume increased by 313%.
“Demand for sophisticated products such as CFDs and options shows that our market increasingly reflects traditional finance,” said Evgeny Gaevoy, CEO of Wintermute. “With the rise of ETFs, institutional investments, tokenization and structured products, we expect cryptocurrencies to become more deeply integrated into the global financial infrastructure.”
Memecoins more than doubled its market share to 16% in 2024. This increase was primarily driven by the impact of tokens such as dogwifhat (WIF), bonk (BONK) and ponke (PONKE) in the Solana ecosystem; but Ether still continues to dominate.
Wintermute noted that derivatives volumes have grown by over 300% and institutions are looking for more sophisticated return and risk management tools. In spot trading, he noted that single-day OTC volume exceeded $2.24 billion, surpassing the weekly record in 2023.
The integration of cryptocurrencies with traditional finance may accelerate further with the diversification of financial products and increased institutional interest. Investors and institutions may have the opportunity to evaluate these developments thanks to capital efficiency and regulatory clarity.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
