Markets
Bitcoin Volume Share During U.S. Market Hours Hits All-Time High
(Bloomberg) — The share of Bitcoin trading that takes place during U.S. market hours has hit a record high, accounting for 46% of this year’s cumulative volume through April, according to a cryptocurrency research firm .
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Research suggests the higher share of trades could be linked to the January launch of spot-Bitcoin exchange-traded funds, since volume increased toward the start and close of U.S. trading hours, according to Kaiko Research . ETFs calculate their net asset value each weekday at the close of U.S. stock exchanges, which Kaiko says drives price discovery and arbitrage trading. Thursday was the day of the week with the highest trading share during these hours, with almost 15% of cumulative daily volume, Kaiko found.
ETFs have attracted nearly $13 billion in net inflows since their launch four months ago, making them one of the most successful debut product categories in the industry’s history. Demand has slowed recently, with only $925 million net entering the funds so far in May, according to data compiled by Bloomberg. Lately, the crypto market has become obsessed with the prospect that US regulators will approve or reject ETFs that invest directly in Ether, the second largest cryptocurrency. A decision from the Securities and Exchange Commission on at least one spot-Ether ETF application is expected by May 23.
Read more: Ether ETF hopes revived amid flurry of app updates
While Bitcoin trading volume during U.S. trading hours has largely returned to 2022 levels, volume during Asian trading hours remains significantly lower, Kaiko also found.
Bitcoin’s performance during U.S. market hours also shows that the cryptocurrency’s volatility is muted compared to previous hours, according to Toby Winterflood, director of product at CCData.
“It literally shows you the impact that these ETFs have had, not only on Bitcoin’s correlation with the S&P, but also on its potential decorrelation with other altcoins and other cryptos,” Winterflood said. “I don’t think we’ll necessarily see this change until ETH, for example, is also approved for an ETF.”
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