The final quarter of 2020 marked a significant increase in institutional cryptocurrency over-the-counter (OTC) trading, with Finery Markets reporting a surge in activity following the US presidential election. According to the financial services firm, the election of Donald Trump sparked a surge in crypto spot trading, reaching its highest levels since 2024.

This spike in institutional OTC trading is a clear indication of the growing interest and confidence in the cryptocurrency market among traditional financial institutions. As the world continues to grapple with the economic impact of the ongoing pandemic, many investors are turning to alternative assets such as cryptocurrencies to diversify their portfolios and hedge against market volatility.

The rise in institutional OTC trading also reflects a shift in the perception of cryptocurrencies from being a niche and speculative asset to a legitimate and valuable investment option. With major companies like PayPal and Square now offering cryptocurrency services, and prominent investors like Paul Tudor Jones and Stanley Druckenmiller publicly endorsing Bitcoin, the industry is gaining mainstream recognition and acceptance.

Moreover, the surge in OTC trading is a testament to the growing maturity and stability of the cryptocurrency market. As more institutional players enter the space, the market is becoming less susceptible to extreme price fluctuations and manipulation, making it a more attractive option for risk-averse investors.

While the exact figures for institutional OTC trading in the fourth quarter have not been disclosed, it is clear that the trend is on an upward trajectory. As we enter 2021, it will be interesting to see how this trend continues and how it will impact the overall growth and development of the cryptocurrency market.