Spot ETFs Revolutionize Bitcoin Trading

US Exchanges Dominate the Scene

Recent data from Bloomberg shows that Bitcoin liquidity is shifting towards US crypto exchanges. Spot exchange-traded funds (ETFs) for Bitcoin have played a key role in this shift.

Rise of Spot Bitcoin ETFs

The launch of spot Bitcoin ETFs in the US has attracted billions of dollars in investment. These ETFs have helped boost Bitcoin’s price and increase trading activity on US exchanges.

Increased Liquidity on US Platforms

US trading venues now account for nearly half of Bitcoin bids and asks within a 2% range of its mid-price. This indicates increased liquidity, making it easier to execute orders without causing significant price fluctuations.

US Market Hours Drive Price Discovery

Bitcoin’s price action is most pronounced during US trading hours, especially in the hour leading up to the 4 p.m. market close. Spot ETFs calculate their value at the US market close, aiding in Bitcoin price discovery.

Outlook for Bitcoin

Despite a recent dip, Bitcoin remains on an upward trajectory. Experts advise monitoring spot BTC ETF inflows as they may indicate price fluctuations. A potential correction could reach depths of up to 40%.