U.S. Bitcoin ETFs Hit Billions in Daily Trading, Challenging Binance

The U.S. spot Bitcoin ETFs are now generating between $5-$10 billion in daily trades, matching major exchanges such as Binance and showcasing their importance to institutional investors.

The head of research at CryptoQuant, Julio Moreno, notes that U.S. spot Bitcoin ETFs have become a leading platform for investors to get exposure to Bitcoin, indicating rising interest from institutional investors.

Despite the surge, Binance is leading in spot trading volume with $18 billion in Bitcoin and $11 billion in Ethereum trading activity.  

Its total daily volume for all its cryptocurrencies is around $22 billion, while the eleven U.S. spot Bitcoin trades a total of  $2.77 billion daily, equaling 67% of Binance’s 4.1 billion Bitcoin trading.

Bitcoin ETFs Inflows Dip as Ether ETFs Gain Momentum

Following Bitcoin’s drop by about 2.5% on Monday to $116,000 as market confidence weakens, inflows into the eleven spot Bitcoin ETFs have dipped this week. BlackRock iShares Bitcoin Trust received the largest share, $223.3 million, from a total of $571.6 million.

Meanwhile, Ether ETFs have doubled Bitcoin ETFs’ inflows, receiving $1.24 billion over the past 4 days. Ever since their launch 13 months ago, they have not had a net withdrawal day since August 20th and have collected over $4 billion in inflows this month.

Despite the growing momentum of ETH ETFs, they have much lower participation and slower institutional adoption compared to Bitcoin, as the ETFs account for only 4% of the ETH trading market.

According to Nick Ruck, the director at LVRG Research, ETFs are not just adding to the market but are actively changing the flow of buying and selling, with their trading activity closely following Bitcoin’s price movement.