Spot Bitcoin ETFs now make up 25% of global BTC trading volume
Quick Take
- Wall Street infrastructure is rapidly capturing market share from crypto-native exchanges.
- The following is excerpted from The Block’s Data and Insights newsletter.
Spot Bitcoin ETFs have continued to provide investors with access to the world's largest cryptocurrency. These products now account for 25% of total Bitcoin spot market volume. This represents a substantial shift from just 10% in October 2024, highlighting how quickly traditional finance infrastructure has captured market share from native crypto trading venues.
The ratio peaked at nearly 30% approximately two weeks ago, before settling at its current levels, demonstrating a significant appetite for regulated Bitcoin exposure among both institutional and retail investors. This 25% figure encompasses all Bitcoin spot trading activity, whether BTC serves as the base or quote currency, providing a comprehensive view of ETF market penetration.
Bitcoin spot ETFs have emerged as some of the most successful ETF launches in financial history, attracting billions in assets under management within their first year of trading. The appeal stems largely from eliminating the operational complexities that have traditionally deterred investors from direct Bitcoin ownership, such as secure custody solutions, private key management, and the technical knowledge required to interact with crypto exchanges. For institutional investors, ETFs provide familiar regulatory frameworks, established settlement processes, and the ability to hold Bitcoin exposure within existing brokerage accounts alongside traditional assets.
Several factors continue to drive preference for ETF-based Bitcoin exposure over spot market trading. Tax reporting simplification represents another significant advantage, as ETF holdings integrate seamlessly with existing portfolio management and accounting systems. The elimination of counterparty risk associated with cryptocurrency exchanges, particularly given the industry's history of high-profile failures, makes ETFs attractive for larger allocations.
This is an excerpt from The Block's Data & Insights newsletter. Dig into the numbers making up the industry's most thought-provoking trends.
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