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1/ Wintermute has evolved from 90% on-screen trading in 2021 to 25% OTC volumes in 2024, marking a significant shift toward institutional trading. The firm now handles $36 billion daily volume across 450 tokens, representing 10-15% of global crypto volumes.

2/ The crypto options market remains dramatically underdeveloped at just 1-1.5% of total market volume, compared to 25-30% in traditional finance. High leverage availability through perpetuals and futures, plus lack of institutional education, are key limiting factors.

3/ Wintermute's expansion into the US market includes opening their first New York office and hiring representation to interact with the crypto task force. The firm has maintained a deliberate separation: spot trading in London, derivatives in Singapore.

4/ The firm distinguishes between two distinct markets within crypto: DeFi/on-chain requiring smart contract developers, and centralized finance (CeFi) requiring traditional quant developers. Few employees successfully transition between these specialized areas.

5/ Without traditional prime brokers in crypto, Wintermute aggregates capital directly from family offices and hedge funds, while sourcing inventory from foundations. This infrastructure gap fundamentally shapes how crypto market making operates differently from TradFi.

6/ Institutional adoption faces structural challenges beyond regulation. Banks struggle with 24/7 market operations, and the lack of fluid market access means no direct market access or inventory sourcing through traditional PB relationships.

7/ Private banks and family offices trading structured products could catalyze options growth. Each structured product sale requires bank-level hedging through vanilla products, potentially creating the volume cascade needed for market development.

8/ The new US administration has brought "a breath of fresh air" for crypto operations. Wintermute's leadership has been actively engaging with the crypto task force, finding them surprisingly receptive to understanding DeFi mechanics.

9/ ETF impacts are secondary rather than primary for market makers. While $15 billion flowed in early 2024, approximately $5 billion was simply hedge funds rebalancing spot BTC versus GBTC for better margining, with limited price impact.

10/ Wintermute Ventures has invested in 137-140 projects with $200 million exposure since 2020, focusing on infrastructure and crypto-adjacent AI projects. The venture arm operates with Chinese walls from trading but creates alignment with protocol foundations.

11/ CFDs have emerged as a pure TradFi product gaining traction in crypto, helping institutions access crypto exposure through familiar instruments. This represents the market's evolution toward TradFi-friendly API offerings and interfaces.

12/ Market manipulation remains a critical issue. Wintermute has publicly denounced manipulation since 2018, viewing it as leading to poor business standards and culture. The firm maintains sub-basis point margins through infrastructure investment rather than questionable practices.

13/ AI in financial trading faces significant challenges due to noisy data. While many claim AI capabilities, genuine applications remain limited. Future AI agents will likely be execution-sensitive, driving volume to market makers offering best prices.

14/ The firm actively incubates projects they would build if not focused on market making, including GMCI (index company), B-bot, and Wildcat (lending platform). This represents a strategic approach to ecosystem development beyond direct trading.

15/ Looking ahead, tokenization of traditional equities will force even non-crypto institutions to understand the technology. The challenge extends beyond technical integration to operational changes like 24/7 market coverage, fundamentally reshaping financial infrastructure.