"U.S. Bitcoin ETFs trade up to $10 billion a day…emerging as a key source for the spot market"

The spot Bitcoin (BTC) exchange-traded funds (ETFs) listed in the United States are taking up a growing share of the Bitcoin spot market. With increased institutional inflows, ETFs are becoming a core pillar in liquidity provision, analysts say.

On the 29th (local time), according to crypto outlet Cointelegraph, Julio Moreno, head of research at on-chain analytics firm CryptoQuant, said, "U.S. spot Bitcoin ETF trading volume is already approaching the spot trading volume of major exchanges," and "ETFs have moved from being one of investors' access routes to Bitcoin to becoming a core source of the market."

According to the outlet, on active trading days U.S. spot Bitcoin ETFs record daily trading volumes of $5 billion to $10 billion. At some times, figures have even exceeded those of major exchanges. In fact, according to CoinGlass data for that day, the combined daily trading volume of 11 U.S. spot Bitcoin ETFs was $2.77 billion, about 67% of Binance's Bitcoin spot trading volume ($4.1 billion). Meanwhile, CoinGecko reports Binance's total daily trading volume is about $22 billion.

Notably, last week spot Bitcoin ETFs saw net inflows totaling $571.6 million, of which BlackRock's iShares Bitcoin Trust (IBIT) accounted for $223.3 million, representing a 40% share. By contrast, spot Ethereum (ETH) ETFs recorded total inflows of $1.24 billion over the same period, more than double. Ethereum ETFs have not recorded a net outflow since the 20th, and over $4 billion has flowed in so far this month.

Moreno said, "While institutional demand for Bitcoin via ETFs has greatly expanded, spot trading of Ethereum remains concentrated on exchanges such as Binance and Crypto.com," adding, "ETFs account for only about 4% of total ETH spot trading."

Nick Luck, LVRG research director, said, "ETFs are no longer merely supporting the spot market; they are directly affecting trading liquidity and price volatility," and "institution-led inflows are further strengthening Bitcoin's long-term position."