Crypto will become more deeply integrated into traditional finance (TradFi) through exchange-traded funds (ETFs) and corporate holdings this year, according to crypto trading firm Wintermute.

Additionally, a major corporate event such as an acquisition or merger will be settled in stablecoins, the market maker and liquidity provider said in an annual review and outlook.

Among its other forecasts:

• The US will begin consultations to create a strategic bitcoin reserve, with China, the UAE and Europe following suit.
• A publicly traded company will sell debt or equity to buy ether (ETH), mimicking MicroStrategy’s ( MSTR ) bitcoin acquisition policy.
• A systemically important bank will offer spot trading of cryptocurrency to clients.

The predictions follow significant demand growth last year, with over-the-counter (OTC) institutional trading volumes more than tripling following the approval last January of bitcoin (BTC) ETFs and the later arrival of ether (ETH) ETFs . The report attributed the interest to improved regulatory clarity and demand for capital-efficient trading. Average OTC trade size rose 17% and total volume 313%, it said.

The volume of derivatives grew by over 300%, driven by institutions seeking more sophisticated return and risk management instruments. In spot trading, Wintermute recorded a record single-day OTC volume of $2.24 billion, surpassing 2023’s weekly record of $2 billion.

Change in asset preferences

Memecoins were one of the success stories of 2024, with their market share more than doubling to 16%. This was primarily driven in the Solana ecosystem by tokens such as dogwifhat (WIF), bonk (BONK) and ponke (PONKE), although ether continues to dominate.

“We saw record growth driven by demand for sophisticated products like CFDs and options, reflecting a growing market that increasingly mirrors traditional finance,” CEO Evgeny Gaevoy said in the report. “We expect even greater momentum as crypto integrates more deeply into the global financial infrastructure through ETFs, corporate holdings, tokenization and the emergence of structured products.”