- June saw an upturn in crypto trading volumes for the first time in three months, largely fueled by the anticipation of spot Bitcoin ETFs following proposals from renowned institutions like BlackRock.
- Despite the 14% increase in combined spot and derivative trading volumes, spot trading levels remain historically low, while derivative market share experiences its first drop in four months.
Crypto trading volumes witnessed a resurgence in June, marking the first climb in three months. This was mainly driven by a sense of optimism arising from spot Bitcoin exchange-traded-fund (ETF) proposals lodged by asset management titan BlackRock and other major institutions.
A June Bounce in Crypto Trading Volumes
The cumulative spot and derivative trading volumes on centralized exchanges ascended by 14% to a hefty $2.71 trillion, as per a report by CCData. This jump marked the first monthly increase since March.
In a significant turn of events, several top-tier U.S. institutions, including Invesco, WisdomTree, and Fidelity, filed or refiled for spot Bitcoin ETFs with the U.S. Securities and Exchange Commission (SEC) last month.
The report from CCData indicates,
“The increase in volatility following the SEC’s lawsuit against Binance US and Coinbase, coupled with the positive outlook in the market following the filing of spot Bitcoin ETFs by the likes of BlackRock and Fidelity, have contributed to an increase in trading activity last month.”
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However, the rise in trading volumes doesn’t paint the full picture. Spot trading volumes are still at an all-time low. In fact, the spot trading volume in Q2 has been the lowest since Q4 2019.
The report also highlighted a 14% surge in derivatives market volumes in June, accounting for 78.7% of the crypto market. This share, though, is a slight dip from the 79.1% in May, marking the first decrease in derivatives market share in four months. According to the report, this suggests that the ETF filings encouraged spot accumulation of crypto assets.
Finally, the report underlined a 23.6% increase in the total derivatives volume traded on the Chicago Mercantile Exchange (CME) in June, amounting to $48.3 billion. The report stated,
“Institutional interest was particularly prevalent in the BTC futures, with the volumes rising 28.6% to $37.9bn, the highest volume traded on the exchange since November 2021.”
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