Are ETFs Taking Over Bitcoin Trading Volume? Data Says No

On-chain data shows exchanges are still the main venue of Bitcoin trading, with Binance alone observing volume double that of the spot ￰0￱ Bitcoin Spot ETFs Still Account For Just 13% Of Trading Volume In a new post on X, on-chain analytics firm CryptoQuant has talked about how the US spot exchange-traded funds (ETFs) compare to exchanges when it comes to Bitcoin trading ￰1￱ ETFs are investment vehicles that allow investors to gain exposure to BTC without having to own ￰2￱ ETFs trade on traditional platforms, so investors who aren’t familiar with the digital asset space can easily invest into the coin through ￰3￱ spot ETFs are relatively new to the sector, having received approval from the US SEC at the start of last ￰4￱ the ETFs, investors had to use cryptocurrency exchanges to buy ￰5￱ with the ETFs, exchanges normally deposit actual tokens to a buyer’s wallet that they can then choose to withdraw into ￰6￱ many traditional investors, though, navigating cryptocurrency wallets and exchanges can feel ￰7￱ provide a simpler, off-chain route into Bitcoin, making them a direct competitor to ￰8￱ their inauguration, spot ETFs have quickly gained popularity, but one question arises: how do they stack up against the old exchanges?

Below is a chart shared by CryptoQuant that puts into perspective the Bitcoin trading volume of the US spot ETFs compared to the major ￰9￱ displayed in the above graph, the Bitcoin spot ETFs have usually witnessed daily trading volume between $5 billion to $10 billion during the last few ￰10￱ is a notable value, but pales in comparison to what cryptocurrency exchanges witness. Binance, the largest platform in the sector, alone observes up to $18 billion in volume on peak ￰11￱ terms of percentage of trading volume occupied since Donald Trump became US President, Binance leads the market with a share of 34.69%. In contrast, the US spot ETFs only hold a Bitcoin volume dominance of 4.53%. ￰12￱ (20.11%), Bybit (6.45%), and MEXC (4.62%) are all ahead of ￰13￱ on the data, the analytics firm concludes, “exchanges remain the primary venue for trading.” A similar picture appears when looking at the spot ETFs for Ethereum, which launched in the US in ￰14￱ the above chart, it’s visible that Binance has made up for 29.07% of the total Ethereum trading volume, far ahead of the 13.08% figure of the US spot ￰15￱ said, the gap here is closer than for ￰16￱ Price Bitcoin has seen a plunge of around 3% over the past 24 hours that has taken its price to $108,500.