Crypto asset trading volume increased for the first time in three months, signaling a shift in market sentiment amid growing optimism due to the recent ETF application. According to CCData’s research report, the combined spot and derivatives trading volume on centralized exchanges rose by a remarkable 14%, reaching $2.71 trillion in June. This marks a significant turnaround from the downward trend observed in the previous three months.
The surge in trading volume can largely be attributed to the renewed interest from major financial institutions, such as BlackRock, Fidelity, Invesco, and WisdomTree, who have recently filed for Bitcoin exchange-traded funds (ETFs) with the US Securities and Exchange Commission (SEC). Their applications have generated a sense of positive outlook for the market, attracting more investors to participate in cryptocurrency trading.
One of the factors contributing to the increased activity is the rising volatility triggered by the SEC’s lawsuit against Binance US and Coinbase. This event heightened investor attention and drove them towards seeking potentially lucrative opportunities in the crypto market. CCData’s report noted that an overall positive sentiment and the anticipation of spot Bitcoin ETFs played a significant role in boosting trading volume.
However, it is important to note that despite the surge, spot trading volumes still remain relatively low when compared to historical levels. The second quarter of this year saw the lowest spot volume since the fourth quarter of 2019, indicating that there is still room for growth and recovery in this segment of the market.
On the other hand, the derivatives market experienced a notable increase in trading volume during June, accounting for 78.7% of the overall cryptocurrency market. Although this signifies a growth of 14% from the previous month, it does mark a marginal decline in derivatives market share for the first time in four months. This suggests that the influx of ETF filings may have influenced a shift in focus from derivatives trading to spot accumulation of crypto assets.
The report highlighted that the Chicago Mercantile Exchange (CME) saw a 23.6% increase in total trading volume of derivatives, amounting to $48.3 billion (approximately ¥7 trillion) in June. Institutional investors demonstrated a particular interest in Bitcoin futures, with trading volume in this segment surging by a remarkable 28.6% to $37.9 billion. This record-breaking volume has not been witnessed since November 2021.
the crypto asset market experienced a welcome surge in trading volume in June. The increased optimism surrounding the ETF applications from major financial institutions, coupled with rising volatility and positive market sentiments, contributed to this growth. While spot trading volumes remain relatively low, the derivatives market witnessed a significant uptick, indicating a potential shift in investment strategies driven by the anticipation of spot Bitcoin ETFs. The growth in trading volume signals that investors are once again finding opportunities in the crypto market and underscores the industry’s resilience in the face of challenges.