Institutional Crypto Investors Demand CFDs: Wintermute Responds to Their Needs

Wintermute Asia, the digital asset trading division of algorithmic trading firm Wintermute Group, announced today (Thursday) the addition of contract for difference (CFD) crypto products to its over-the-counter (OTC) derivatives suite.

Wintermute Asia Expands OTC Derivatives Offering with New CFD Product

According to the company, the new CFD offering aims to meet growing demand from institutional investors for access to crypto markets. Wintermute said it witnessed increased interest late last year from traditional financial institutions, measured by higher trading volumes compared to crypto-native firms.

The CEO of Wintermute, Evgeny Gaevoy, said CFDs provide "efficient access to markets through a familiar instrument" as interest grows. The product gives exposure to digital assets "without the need for direct infrastructure to hold and secure the underlying assets," he added.

The firm's new CFDs are initially available on Bitcoin, Ethereum and other major cryptocurrencies. They can be traded via Wintermute's API or chat tools. In the future, however, the company wants to expand CFD's offering on a larger number of digital assets.

Wintermute Asia is the Asian arm of Wintermute Group, one of the largest global crypto trading shops. The unit offers various OTC derivative products, including options, futures, and customized offerings to meet diverse institutional investor requirements.

Wintermute Reports Higher Volume

Wintermute's over-the-counter trading desk saw substantial expansion in 2023, even as broader digital asset markets slowed. Over the past year, the company achieved multiple volume records, surpassing $2 billion in weekly trade volume. Wintermute nearly doubled its counterparty base compared to 2022.

Additionally, trading activity accelerated in the second half of 2023, with total volume quadrupling from the first half. By the end of the year, the desk had traded 206 distinct crypto assets across 495 trading pairs. Altcoins also composed a greater volume share, making up 40% of trading in the latter half of 2023.

Options Block Trade via CME

Towards the end of 2023, Wintermute announced a series of significant partnerships, marking a pivotal step in its expansion and strategic positioning within the digital assets market.

Among these developments, the company executed its first options block trade through the CME Group. This BTC/USD block trade, a collaboration between Wintermute Asia and TP ICAP, was successfully cleared by ABN AMRO Clearing Bank N.V., highlighting the firm's commitment to providing new methods for institutional investors to gain exposure to digital assets.

Simultaneously, WOO X, a player in the digital assets exchange space, has successfully integrated Wintermute as a liquidity provider.

"Our expertise in providing robust liquidity complements this collaboration grounded in our shared commitment to transparency, which is critical to building trust in centralized crypto trading products," said Gaevoy.