As institutional investors gradually show more interest in cryptocurrencies, Bitcoin Exchange-Traded Funds (ETFs) based in the U.S. are now playing a noteworthy role in daily spot trading activity.
“The volume of Bitcoin spot trading through U.S.-based ETFs is a crucial avenue for Bitcoin exposure,” noted Julio Moreno, head of research at Cryptoquant, during a discussion on Thursday.
These U.S. spot Bitcoin ETFs often generate between $5 billion and $10 billion in daily trading volume, especially on active days, and they sometimes surpass most crypto exchanges, which indicates a growing interest from institutional investors.
Binance leading the spot trading sphere
However, Binance, the largest crypto exchange in the world, continues to dominate the spot trading volume, according to Moreno.
Bitcoin trading has surged to around $18 billion, with Ether (ETH) trading reaching up to $11 billion on peak days.
Currently, the combined trading volume of 11 U.S. spot Bitcoin ETFs is approximately $2.77 billion. This represents around 67% of Binance’s daily spot Bitcoin volume, which sits at about $4.1 billion.
Overall, Binance’s total daily trading volume across all pairs is roughly $22 billion.
“The U.S. spot Bitcoin ETF is carving out a substantial presence in the crypto landscape, showcasing its essential role in price discovery and gaining traction from institutional players,” shared Nick Ruck, director at LVRG Research.
Moreno added that ETH spot trading is mainly concentrated on Binance, with Crypto.com following close behind, while ETFs hold a minor percentage—just 4%—indicating slower institutional acceptance of Ethereum compared to Bitcoin.
Still, the recent trends in ETF figures suggest a more favorable narrative.
Bitcoin ETFs face challenges as Ether gains ground
This week witnessed an inflow of $571.6 million into Bitcoin ETFs, as per Coinglass, with BlackRock’s Bitcoin Trust claiming a substantial portion of this—nearly 40%, or $233.3 million, since Monday.
Bitcoin experienced a decline of about 2.5% since Monday, dropping to $111,600, reflecting a cooling sentiment.
On the flip side, spot Ether ETFs have outperformed, attracting a total inflow of $1.24 billion over the same four-day span—more than double the amount for Bitcoin funds.
Ether funds have maintained a streak without any net outflows since August 20, having accumulated over $4 billion this month alone—representing 30% of all inflows since their launch 13 months ago.
“These flow dynamics show that ETFs are not just an add-on; they are actively transforming the liquidity landscape of the spot market, increasingly aligning their trading patterns with Bitcoin price shifts,” remarked Lack.
“Today, these financial products constitute a significant slice of the total Bitcoin supply, reinforcing ETFs as a primary access point for traditional capital in the crypto space.”
