Kaiko Assesses ETF Impact on Cryptocurrency Trading Volumes

The launch of spot Bitcoin ETFs in the United States has significantly increased global cryptocurrency trading volumes, according to calculations by Kaiko.

Despite reporting improved revenue and profits, Coinbase’s global market share has seen only a minor increase of 1% over the same time period.

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— Kaiko (@KaikoData) June 25, 2024

Despite improved revenue and profit figures, Coinbase’s global market share increased by only 1% from October to June.

Bybit emerged as a key beneficiary from the ETF factor, with its share doubling from 8% to 16%. This surge allowed the platform to become the second largest in the world by this metric in March, following Binance (54%).

Experts described it as “surprising” that the latter’s market share continued to decline during the period (from 60%), despite the organization reaching a deal with US regulators at the end of 2023.

Analysts attributed Bybit’s success to its competitive fees—among the lowest in the industry. “But that’s only part of the story,” they added, noting that Binance and OKX offer similar conditions, including various campaigns.

An examination of the spot trading volume structure showed that Bybit’s growth was driven by Bitcoin and Ethereum, whose share increased from 17% to 53%.

Binance saw greater interest in altcoins, while the share of the two leading cryptocurrencies fell from 59% to 43%. Trading turnover in altcoins is typically more sentiment-driven and tends to decline more during bear markets, specialists explained.

Bybit’s growing spot share mirrors its derivatives dynamics. In 2023, the platform secured the second position after Binance.

The platform’s open interest share has remained unchanged since October, with significant growth observed in the first half of 2023. Analysts attributed the increase to benefiting from Binance’s issues with US authorities. The change occurred at the expense of OKX, whose market share fell from 25% to 15%.

In May, Russian users accounted for 27% of the total traffic on the Bybit cryptocurrency exchange, according to calculations by journalist Colin Wu.

In May, it was reported that the platform opened registration for Chinese users residing outside the country.