Since its historic launch in early 2024, the Bitcoin spot ETF market has blown away all traditional finance statistics. It’s an unprecedented success, with volumes now rivaling cryptocurrency exchange platforms.
Spot Bitcoin ETFs: between $5 billion and $10 billion in daily volumes
The launch of spot Bitcoin ETFs on the US stock market has been so successful that it has quickly established itself as the best of its kind in the last 30 years. This unprecedented boom means that the amount of BTC under management now represents 6.5% of its capitalization, with a total of $145 billion. These impressive figures are reflected in its daily volumes, now estimated at between $5 billion and $10 billion. As a result, they represent a significant share of the spot volumes recorded on the Bitcoin market.
This observation was recently made by Julio Moreno, head of research at the analysis company CryptoQuant. And with good reason, as these daily volumes “sometimes exceed most crypto exchanges,” to the point of reflecting “growing institutional demand .”
However, this situation has been undergoing a significant change in recent weeks, with the arrival of spot Ethereum ETFs, which are now generating daily net inflows that are significantly higher than those of Bitcoin. However, this increased activity represents only 4% of ETH spot trading, which is largely concentrated on cryptocurrency exchanges such as Binance (35%) and Crypto.com (20%).
Binance remains the undisputed leader
Nevertheless, the largest share of Bitcoin spot trading activity remains largely concentrated on the Binance platform, with “BTC volume reaching up to $18 billion on peak days, surpassing the ETF market and all other exchanges.”
In fact, Binance currently has a daily trading volume for BTC of around $4 billion, while for spot Bitcoin ETFs, this figure is around $2.8 billion.
As for Ether (ETH), figures show estimated volumes of between $8.8 billion and $11.1 billion on Binance during the most active days. Currently, the various trading pairs available have a daily total of $4.8 billion, which is higher than Bitcoin.
According to Nick Ruck, director of LVRG Research, “The current flow dynamics show that these ETFs are not just supplementing, but actively reshaping spot market liquidity.” Could this be the end of the dominance of cryptocurrency exchanges?
