After months of stagnation, the trading volume in crypto markets saw a revival, fueled by the flurry of legal actions from the SEC against major players Binance and Coinbase, and the buoyed sentiment following BlackRock’s filing for a Bitcoin ETF.
June witnessed a 14.2% ascension in combined spot and derivative trading volumes on centralized exchanges (CEXs) to $2.71 trillion, as indicated in the latest report by CCData. Binance, its US affiliate, and Coinbase all experienced shrinking market shares during this period.
The report highlighted that this is the first jump in trading volumes in a quarter and attributes it to the Bitcoin ETF filed by BlackRock, and the legal troubles facing Binance and Coinbase with regulators in the U.S.
Binance faced a considerable exodus of capital following the SEC lawsuit on June 5, resulting in the most significant CEX market share drop of 1.40% to 41.6%. Concurrently, Binance.US had a modest share decline of 0.86% to 0.36%. Coinbase’s market share dipped the least among the top exchanges, sliding 0.08% to 5.36%.
Though regulatory battles stirred market turbulence, BlackRock’s decision to file a Bitcoin ETF, valued at around $30,500, bolstered investor sentiment. As a result, spot trading activity grew by 16.4% to $575 billion in June. However, CEX spot trading volumes remain relatively low historically, with the second quarter representing the lowest volumes since 2019.
June also saw the derivatives trading volume rising 13.7% to $2.13 trillion, marking the first increase in a quarter. Binance topped the derivatives crypto trading chart, boasting a volume of $1.21 trillion in June. OKX exchange followed, reporting a 44.9% activity increase with $416 billion.
Trading volume for Bitcoin futures on the CME exchange rocketed, reaching $37.9 billion, a 28.6% increase, marking the highest trading volume since November 2021. Trading volume for Ether futures also grew, achieving $8.91 billion, a 9.93% increase in the month.
The report underlines that “the uptick in BTC futures volume in the recent months signifies elevated trading activity from institutional players, as markets speculate over the SEC’s decision on several Bitcoin ETF filings.”
This suggests that the trading volume surge is a clear sign of increasing interest and participation by institutional investors, who are closely following the potential approval of multiple Bitcoin ETF filings. Their activity could influence future market behavior and crypto prices.
Furthermore, the legal actions from regulatory authorities indicate the increasing scrutiny of crypto exchanges, hinting at a potential for stricter regulation in the future. This could lead to further market fluctuations, but also potentially offer a safer, more regulated environment for investors.