In a reversal of recent downward trends, optimism within the crypto community is on the upswing, ignited by institutional interests turning towards Bitcoin and ETF proposals. Namely, seasoned asset managers like BlackRock and several other key institutions filed spot bitcoin ETF proposals, thereby stirring activities in the market.
June 2021 performed quite impressively as crypto trading volumes ascended for the first time in three long months, with a 14% surge amounting to $2.71 trillion. This was according to CCData who also emphasized that this was the first monthly increase since March.
While this may seem like green pastures and sunny skies for the crypto enthusiasts, the figures still pointed to a low trend in spot trading volumes. A careful analysis of the second quarter spot trading volume reveals stagnancy, as it was observed to be the lowest since Q4 2019.
Among the high-ranking U.S institutions throwing their weight behind spot Bitcoin ETFs propolsals were Invesco and WisdomTree, alongside Fidelity. However, a sudden increase in volatility trailed the SEC’s lawsuit lodged against crypto exchange giants Binance US and Coinbase. Still, the positive projection in the market brought about by spot Bitcoin ETF filings stirred an uptick in trading activities.
The derivatives market wasn’t left out of the crypto merriment either, as a 14% boom was recorded in June, thus snatching 78.7% of the crypto market. Interestingly, this represented a slight fall from the previous 79.1% in May – the first drop in the derivatives market share for the past four months. This incidence might be an indication that the ETF filings spurred spot crypto asset acquisitions.
The Chicago Mercantile Exchange (CME), a reputable marketplace for crypto derivatives, also shared in the rising June tide, with a 23.6% rise to $48.3 billion total derivatives volume. Particularly noticeable was the institutional interest in BTC futures, as volumes spiked by 28.6% to reach a towering $37.9 billion – the exchange’s highest turnover since November 2021.
In conclusion, while the increased trading volumes hint at positive momentum, the shadows cast by the SEC’s aggressive approach to crypto exchanges and the still historically low trading volumes deserves serious contemplation for the enthusiasts and the investors alike. It remains to be seen how impactful the recent spot Bitcoin ETF filings will be for the market’s recovery in the long run.
Source: Coindesk
