Bitcoin ETFs Emerge as Key Liquidity Source

On active days, these funds generate between $5 billion and $10 billion.

Spot Bitcoin ETFs in the United States have nearly matched the trading volumes of major exchanges like Binance. On active days, these funds generate between $5 billion and $10 billion, noted Julio Moreno, head of research at CryptoQuant.

According to him, these instruments have become one of the main ways for investors to purchase digital gold. 

Binance Remains the Leader  

Despite the success of ETFs, Binance consistently leads in spot trading volume of the largest cryptocurrencies by market capitalization. The combined figure for 11 American Bitcoin ETFs amounts to $2.77 billion, while the exchanges boast $4.1 billion. 

During peak periods, the trading volume of digital gold on the platform reached $18 billion, while Ethereum hit $11 billion. Binance’s total daily figure across all pairs exceeds $22 billion.

Unlike Bitcoin, spot trading of the second-largest cryptocurrency by market cap is primarily concentrated on Binance and Crypto.com. The share of spot ETFs based on the asset here is only 4%. 

According to Moreno, this indicates a slower institutional adoption of Ethereum. However, data on inflows into ETH ETFs paints a different picture. 

Latest ETF Developments

Over the past four trading days, spot Bitcoin ETFs have attracted a total of $571.6 million. Since the beginning of August, inflows into these ETFs have slowed. 

During the same period, Ethereum-focused instruments received $1.2 billion. The previous week, funds lost $230 million, but overall since the start of the month, the net inflow exceeded $4 billion.  

At the end of August, the CEO of VanEck described Ether as the “Wall Street token.” Previously, JPMorgan analysts highlighted four main reasons for the asset’s dominance over Bitcoin.