Trading Activity Soars as Bitcoin ETFs Take Hold in US and Hong Kong
The post Trading Activity Soars as Bitcoin ETFs Take Hold in US and Hong Kong appeared on BitcoinEthereumNews.com.
ETFs boost Bitcoin trading volumes post-approval, especially around the US market closes. Weekdays saw heightened BTC trading activity, contrasting with declining weekend volumes. Hong Kong’s ETF impact on Bitcoin volumes was subdued compared to the US, reflecting market dynamics. The introduction of spot Bitcoin exchange-traded funds (ETFs) in the U.S. and Hong Kong has triggered a significant shift in Bitcoin’s market dynamics, particularly in terms of trading volumes and liquidity, according to a new analysis by Kaiko. Our latest Deep Dive is out now. This week we examined the impact of BTC ETFs on the spot market structure. Check it out below 👇https://t.co/Tzc9fwZAty — Kaiko (@KaikoData) June 27, 2024 The U.S. Securities and Exchange Commission’s approval of 11 BTC ETFs on January 11 marked a pivotal moment, followed by their launch the next day. Similarly, Hong Kong entered the market with approvals for Bitcoin and Ethereum ETFs in late April. These developments have prompted a detailed analysis of how these financial products influence Bitcoin’s spot market structure. Research indicates a clear uptick in trading volumes across exchanges included in Bitcoin benchmark reference rates. Notably, trading activity surged around the U.S. market close, between 3 p.m. and 4 p.m. New York time, coinciding with ETFs’ net asset value (NAV) calculations based on benchmark fixing prices. The role of benchmarks in BTC ETFs is significant. These benchmarks derive their index prices from aggregated trade data across selected exchanges, including Bitstamp, Coinbase, itBit, Kraken, Gemini, and LMAX Digital. The NAV of each ETF is determined using these benchmark index prices post-market close at 4 p.m. EST, influencing trading behaviors and liquidity dynamics. Following the approval of ETFs, trading volumes in U.S. markets increased, recovering from earlier lows this year. This recovery was supported by positive economic conditions and expectations of U.S. interest rate…
Filed under: News - @ July 2, 2024 1:22 am