Crypto exchange volumes rebound in wake of bitcoin ETF filings

Quick Take

  • Crypto exchange volumes have marched higher over the last month, according to The Block’s data dashboard. 
  • JMP analyst Devin Ryan attributes the activity to institutions pouring into the market in the wake of BlackRock’s spot bitcoin ETF filing. 

Crypto exchange trading volumes are marching upwards in a move driven by institutions, according to JMP analyst Devin Ryan. 

The Block's data dashboard shows the seven day moving average for daily exchange volumes has surged over the course of the last month, climbing from $11 billion on May 26 to nearly $19.5 billion on June 26. 

That said, daily exchange volumes are down significantly from their peak of over $150 billion clocked in during the previous crypto bull cycle. 

Institutions getting involved

Devin Ryan of equity research shop JMP attributed the recent increase in trading volumes to institutions entering the space.

"We believe the uptick in trading volume during the week ended 6/24, which was accompanied by a 12% W/W appreciation in total crypto market cap, can likely be attributed to some momentum in the space after BlackRock (BLK, NC) filed an application with the SEC for a spot Bitcoin ETF," he said, referring to the asset manager's June 15 filing. 

In the wake of the filing, a wide range of companies from WisdomTree to Invesco have refiled their own applications for funds to track the price of the largest cryptocurrency. As The Block reported, asset management giant Fidelity plans to submit its own filing for a spot bitcoin ETF. 

The institutional activity driving higher volumes is evident in LMAX Digital's more healthy performance recently. The firm, which exclusively services institutional clients, has seen total notional volumes for Monday come in at $415 million — a figure that's 15% above its 30-day average. 

"Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $6,701 and average position size for ether at 2,743," the exchange said. 

"Volatility has trended up in June after trading down at yearly low levels earlier in the month. We’re looking at average daily ranges in bitcoin and ether of $1,008 and $65 respectively," it added.

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