Getty Hill, trader at Grapefruit, told CoinDesk their clients’ interest in converting BTC to WBTC reflects market participants capitalizing on the growing number of opportunities for using pseudo-BTC in the growing decentralized finance (DeFi) ecosystem. At FTX, CEO Sam Bankman-Fried told CoinDesk OTC demand for WBTC is also significant, even if it’s not at the same level as during the height of the DeFi craze over the past few months.
Even if it cools off a bit in the coming months, he expects client demand for tokenized bitcoin to “sustain itself at a way higher level than before.” Alameda Research has been the leading wrapped bitcoin merchant for the past two months due to over-the-counter demand at its sister company, FTX. In August, Alameda minted $160 million worth of WBTC followed by $306 million minted in September.
September’s growth also benefited from the activity of some large merchants who minted no WBTC the month before. Beyond WBTC, the supply of all forms of tokenized bitcoins grew 120% in September, according to data from Dune Analytics, to over 121,000 BTC, up from nearly 55,000 BTC in August, as growth among smaller BTC tokenization projects continues.