US Bitcoin ETFs Account for Only 10-15% of Global Trading Volume, Reports Show
Excitement within the crypto industry has been soaring ever since the US Securities and Exchange Commission (SEC) approved 11 spot Bitcoin exchange-traded funds (ETFs) in the United States. However, recent data reveals that these US-based ETFs make up just a small fraction, 10 to 15%, of the total Bitcoin spot trading volume observed across global centralized exchanges. Furthermore, these ETFs also account for a mere 3% of outstanding Bitcoin supply, equivalent to approximately 650,000 Bitcoin.
A report released by Coinbase Institutional suggests that institutional investors may have overestimated the short-term impacts of these newly approved products. While the approval of the Bitcoin ETFs has undoubtedly generated significant buzz, market players might be overlooking other promising opportunities and themes that could prove to be more relevant moving forward in the post-spot Bitcoin ETF environment.
According to the Coinbase Institutional report, there is a strong likelihood that the search for yield will soon spark renewed interest in Decentralized Finance (DeFi), particularly in 2024. Investors seeking higher returns may find themselves drawn towards the potential profitability offered by DeFi platforms. Additionally, the report hints at a potential catch-up period for DeFi in the first half of 2024, where it may narrow the gap with its peers.
As the crypto industry continues to evolve, it remains crucial for market participants to consider a broader array of possibilities beyond the spotlight of the US-approved Bitcoin ETFs. Exploring alternative investment avenues, such as DeFi, could prove to be a savvy move in capturing promising prospects and embracing the ever-changing landscape of the global crypto market.
Analyst comment
Neutral news.
As an analyst, the market may experience a temporary slowdown as investors realize that US Bitcoin ETFs have a smaller impact than anticipated. However, attention may shift towards decentralized finance (DeFi) platforms, leading to renewed interest and potential growth in that sector. Market participants should consider exploring alternative investment avenues beyond Bitcoin ETFs to capture promising prospects in the evolving crypto market.
