Singapore — A sudden spike in over-the-counter (OTC) trading volumes on Binance during the past 72 hours points to growing dominance by institutional desks in setting cryptocurrency liquidity, according to exchange data reviewed by market-analytics firms on Monday.
Aggregated order-flow tallies compiled by Kaiko Research show Binance’s OTC block desk processed roughly US$3.5 billion in notional value between Friday morning and Sunday night — a 47 percent jump from the prior three-day average and the platform’s busiest weekend since November 2022. Bitcoin and ether accounted for just over 70 percent of the turnover, while stablecoin swaps and tokenized U.S. Treasury products made up most of the remainder.
“What we’re observing is classic pre-positioning by funds that cannot work their tickets through the public order book without causing slippage,” Kaiko senior analyst Clara Medan told SourceRated. “The trade sizes we flagged, often above US$25 million each, are only typical of hedge funds, market-neutral arb desks and a handful of asset managers.”
Binance does not publish real-time OTC statistics, but two brokerages that route flow to the exchange confirmed the figures were “directionally accurate.” A spokesperson for Binance declined to detail counterparties but said the desk “continues to see heightened interest from professional investors managing cash treasuries in a higher-rate environment.”
Analysts link the activity to two looming catalysts. First, the U.S. Securities and Exchange Commission is expected to clarify custody and broker-dealer rules for digital assets as early as April. Second, Bitcoin’s fourth “halving” event, which will cut miner rewards by 50 percent, is scheduled for mid-April and historically tightens spot supply.
“Institutions are hoovering liquidity before both events because they anticipate higher price volatility and thinner market depth,” said Michael Safi, head of research at London-based Amber Data. “A deep OTC book lets them move size without signalling intent.”
The intensifying institutional footprint could crowd out retail traders who rely on public order books, some market participants warn. Others argue that large players improve price discovery by standing ready to buy or sell blocks when retail sentiment swings.
Looking ahead, researchers expect OTC volumes to remain elevated through the second quarter. Should U.S. regulators adopt a lighter-touch regime, prime brokers believe pension funds and insurers could join the current cohort of hedge funds and family offices, further entrenching institutional control over crypto liquidity.