YEREVAN (CoinChapter.com) – According to the latest CoinShares report, the week ending Jan 13 saw a record-breaking $17.5 billion in trading volume for crypto investment products from asset managers like Bitwise, Grayscale, and 21Shares. This surge in trading volume coincided with the launch of spot bitcoin ETFs in the US market.
Did you know? The US Securities and Exchange Commission (SEC) finally bent to public demand and pressure from giants like BlackRock and approved Bitcoin-based spot ETFs on Jan 11. The product could bring wider access to the original cryptocurrency, dramatically increasing BTC’s chances of starting a bull run. The approval comes after years of struggle as spot ETF proponents faced numerous delays and outright rejections from the regulatory body.
Crypto Trading Red Hot At Record High
CoinShares’ Head of Research James Butterfill commented on the matter, calling the results “highest on record.”
Trading volumes were US$17.5bn last week, the highest on record, compared to an average of US$2bn per week in 2022. These trading volumes represented almost 90% of daily trading volumes on trusted exchanges last Friday, unusually high as they typically average between 2%-10%.
he wrote in the report.
Last week, crypto investment products managed by companies like Bitwise, Grayscale, and 21Shares received $1.18 billion in inflows, pending a T+2 settlement, as noted by Butterfill.
T+2 settlement is a process where securities transactions are finalized two business days after execution. Despite this significant inflow, it didn’t reach the record $1.5 billion seen with the launch of futures-based ETFs in October 2021.
Will the High Trading Continue?
In the last week, the United States led in cryptocurrency inflows with $1.24 billion, while Switzerland also saw significant inflows of $21 million.
This trend was in contrast to Europe and Canada, which experienced outflows, likely due to traders shifting their focus from Europe to the US. Bitcoin remained a primary focus with $1.16 billion in inflows, accounting for 3% of its total assets under management.
Smaller inflows were in short-Bitcoin, Ethereum, and XRP, while Solana only saw a modest inflow of $0.5 million. True, predicting the continuation of high trading volumes in the cryptocurrency market is challenging due to its inherent volatility and the influence of various external factors such as regulatory changes, market sentiment, global economic conditions, and technological advancements.
However, the spot ETF approval is still a ‘fresh’ event in US crypto trading, and could still attract some attention among institutional investors, ensuring a new record high.
