A maturing OTC market is resulting in narrowing spreads

Over the counter (OTC) trading is generally used to facilitate large ($100k+) orders for market participants. Using OTC desks for sizable orders, as opposed to exchanges, saves customers the headache associated with price slippage or having to split up an order into several smaller batches. OTC desks work with customers directly to find an appropriate price at which to trade. These businesses can be split into two major categories:

Gabriel Wang, analyst at Aite Group, estimates that the OTC market accounted for 60% of all cryptocurrency trades in 2018. In this report, we will look into the dynamics that are changing the OTC market, and what it could mean for the industry moving forward.