Are ETFs Taking Over Bitcoin Trading Volume? Data Says No
On-chain information reveals exchanges are nonetheless the primary venue of Bitcoin buying and selling, with Binance alone observing quantity double that of the spot ETFs.
US Bitcoin Spot ETFs Nonetheless Account For Simply 13% Of Buying and selling Quantity
In a brand new post on X, on-chain analytics agency CryptoQuant has talked about how the US spot exchange-traded funds (ETFs) evaluate to exchanges in relation to Bitcoin trading volume.
Spot ETFs are funding automobiles that enable traders to realize publicity to BTC with out having to personal it. The ETFs commerce on conventional platforms, so traders who aren’t accustomed to the digital asset area can simply make investments into the coin by way of them.
The spot ETFs are comparatively new to the sector, having obtained approval from the US SEC at the beginning of final 12 months. Earlier than the ETFs, traders had to make use of cryptocurrency exchanges to purchase BTC. In contrast to with the ETFs, exchanges usually deposit precise tokens to a purchaser’s pockets that they’ll then select to withdraw into self-custody.
For a lot of conventional traders, although, navigating cryptocurrency wallets and exchanges can really feel daunting. ETFs present an easier, off-chain route into Bitcoin, making them a direct competitor to exchanges.
Since their inauguration, spot ETFs have rapidly gained recognition, however one query arises: how do they stack up in opposition to the outdated exchanges? Beneath is a chart shared by CryptoQuant that places into perspective the Bitcoin buying and selling quantity of the US spot ETFs in comparison with the foremost exchanges.
As displayed within the above graph, the Bitcoin spot ETFs have often witnessed day by day buying and selling quantity between $5 billion to $10 billion throughout the previous few months. It is a notable worth, however pales compared to what cryptocurrency exchanges witness.
Binance, the biggest platform within the sector, alone observes as much as $18 billion in quantity on peak days. By way of share of buying and selling quantity occupied since Donald Trump turned US President, Binance leads the market with a share of 34.69%.
In distinction, the US spot ETFs solely maintain a Bitcoin quantity dominance of 4.53%. Crypto.com (20.11%), Bybit (6.45%), and MEXC (4.62%) are all forward of them. Based mostly on the information, the analytics agency concludes, “exchanges stay the first venue for buying and selling.”
An identical image seems when trying on the spot ETFs for Ethereum, which launched within the US in mid-2024.
From the above chart, it’s seen that Binance has made up for 29.07% of the entire Ethereum buying and selling quantity, far forward of the 13.08% determine of the US spot ETFs. That mentioned, the hole right here is nearer than for Bitcoin.
BTC Worth
Bitcoin has seen a plunge of round 3% over the previous 24 hours that has taken its worth to $108,500.
