The Most Actively Traded Securities On OTC Markets In 2020 Included Cannabis, Crypto, And Multinationals

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

Trading volume on OTC Markets surged in 2020 amidst the unprecedented volatility brought upon by the pandemic—especially at the end of the year. 

In December alone, nearly $52 billion worth of shares traded hands on the OTCQX, OTCQB, and Pink Markets. 

"The increased demand in trading in the U.S. public markets was reflected in increases in total dollar volume on our markets in 2020,” said Jason Paltrowitz, executive vice president, corporate services at OTC Markets Group. He noted that dollar volume on OTC Markets increased 27% between November and December.

On the OTCQX Market, the top tier of OTC Markets, the securities that were most actively traded during the year include a diverse group of both large multinationals and smaller, companies in innovating industries like cannabis and crypto.

Multinationals Represent

As has been the case in prior years, a number of large international companies were among the most-traded names in 2020.

Roche Holding Ltd RHHBY was near the top of the list, with just under $19 billion worth of shares trading. The Swiss pharmaceutical giant benefited from receiving the Emergency Use Authorization from the FDA for its COVID-19 antibody test in May, making it one of the first companies to receive such a designation.

Also among the most-traded names were French food conglomerate Danone DANOY, German apparel retailer adidas AG ADDYY, French bank BNP Paribas BNPQY, and German semiconductor manufacturer Infineon Technologies AG IFNNY. 

Crypto Securities Were Big Winners

Enthusiasm for cryptocurrency assets was a major theme in 2020. For the first time, the Grayscale Bitcoin Trust GBTC was the most actively traded security on the market, as over $26 billion worth of shares were traded.

Much of that activity came at the end of the year, with over $8 billion worth of GBTC changing hands in December alone as crypto assets soared to new all-time highs. That same fervor also extended to the Grayscale Ethereum Trust ETHE, which was the third most-traded OTCQX security all year. Over one third of ETHE’s total 2020 dollar volume came in December.  

Cannabis Winners

Elsewhere, investors were also extremely enthusiastic about cannabis companies—specifically those based in the U.S. Thanks in part to the changing legalization landscape and the U.S. cannabis market’s relative infancy compared to Canada, a number these companies experienced very strong demand in 2020. 

Trulieve Cannabis Corporation TCNNF, Curaleaf Holdings Inc., CURLF, and Green Thumb Industries Inc. GTBIF all were among the 10 most actively traded OTCQX securities in 2020. Each had over $1 billion worth of shares trade, and each delivered returns between 119-318%. 

OTCQB

On the OTCQB Market, CytoDyn Inc. CYDY was the most actively traded security. The company benefited from the same tailwinds as Roche, and traded more than $5 billion worth of shares. 

Fannie Mae FNMA and Freddie Mac FMCC were once again among the most-traded companies on the market as well. Combined, the duo had nearly $4 billion worth of shares change hands.

Canadian psychedelic therapy company MindMed Inc MMEDF also made the list, reflecting the rising demand of that nascent industry. 

Below are the top 10 most actively traded securities on the OTCQX and OTCQB markets in 2020. 

OTCQX

OTCQB

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.