Crypto trading volumes increased for the first time in three months in June, fueled by confidence following the filing of spot bitcoin exchange-traded-fund (ETF) proposals by asset manager BlackRock and other significant institutions.
According to CCData, total spot and derivative trading volumes on centralised exchanges increased 14% to $2.71 trillion. This is the first monthly increase since March, according to the data. Last month, many high-profile U.S. institutions, including Invesco and WisdomTree, as well as Fidelity, registered or refiled for spot bitcoin ETFs with the Securities and Exchange Commission (SEC).
“The increase in volatility following the SEC’s lawsuit against Binance US and Coinbase, as well as the market’s positive outlook following the filing of spot Bitcoin ETFs by the likes of BlackRock and Fidelity, have contributed to an increase in trading activity last month,” CCData stated. Nonetheless, spot trade volumes continue to be historically low. According to the data, spot trade volume in the second quarter was the lowest since the fourth quarter of 2019.
Volumes in the futures market surged by 14% in June, accounting for 78.7% of the total crypto market. According to the research, this is down from 79.1% in May, the first dip in derivatives market share in four months, indicating that EFT registrations prompted spot acquisition of crypto assets.
The overall derivatives volume traded on the Chicago Mercantile Exchange (CME) increased by 23.6% in June to $48.3 billion, according to the report.
“Institutional interest was particularly prevalent in the BTC futures, with volumes increasing 28.6% to $37.9 billion, the highest volume traded on the exchange since November 2021,” according to the study.