Over-the-counter (OTC) trading is gaining popularity among institutional crypto investors, with 70% expressing interest in OTC trading for digital assets, according to a new survey by Laser Digital.
- 70% of Institutional Crypto Investors Eye OTC Trading: Survey finds high interest in over-the-counter trading for digital assets among institutional investors.
- Contracts for Difference Most Popular OTC Product: 64% of surveyed investors prefer Contracts for Difference (CFDs) for OTC crypto trades.
- Demand for Diverse Liquidity Options: Investors seek a range of liquidity options, with weekly liquidity being the most desired (51%).
Related Solana Meme Coin Popcat Eyes 50% Rally, Backed by Crypto KOLs
OTC Trading Popular Among Crypto Institutional Investors
The study, which polled 303 professional investors managing approximately $5 trillion in assets, found that 87% would be interested in settling bilaterally with a digital asset crypto OTC provider.
Among the various OTC products, Contracts for Difference (CFDs) emerged as the most sought-after, with 64% of respondents expressing interest. This was followed by spot trading at 40% and borrowing/lending at 36%.
“There is strong potential demand for OTC trading in digital assets among professional investors,” the report noted. The growing interest in OTC trading suggests a maturing market infrastructure for digital assets, potentially addressing liquidity concerns for larger institutional players.
The survey also revealed that investors prefer a range of liquidity options, with 51% seeking weekly liquidity, 32% preferring daily liquidity, and 17% content with monthly liquidity for digital asset investments.
As institutional adoption of cryptocurrencies continues to grow, the demand for sophisticated trading mechanisms like OTC appears to be increasing in tandem, signaling a potential shift in how large-scale digital asset transactions are conducted.
