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US Bitcoin ETFs Lead Spot Trading Volume, But Binance Dominates ETH Market

US Bitcoin ETFs Lead Spot Trading Volume, But Binance Dominates ETH Market

US Bitcoin ETFs now drive up to $10B in daily activity, yet Ethereum ETFs attract $4B in August inflows, signaling a strong institutional rotation toward ETH despite Binance’s continued dominance.

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Fact Check
The evidence strongly supports both parts of the statement. Source 3 explicitly states that 'US ETFs now a major source of Bitcoin spot trading volume.' Sources 3 and 7, which are the same recent Cointelegraph article, directly confirm the second part by stating that 'ETH spot trading is mostly concentrated on Binance,' further noting that ETFs only account for 4% of this volume, ranking sixth. This is corroborated by other sources like Kaiko Research (Source 4), which highlight the significant impact of ETFs on Bitcoin trading.
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Summary

US Bitcoin ETFs have reached $5–10 billion in daily trading activity, now representing 13.1% of global spot volume since the US elections, making them the third-largest venue behind Binance and Crypto.com. While Bitcoin ETFs saw $800 million in outflows during August, Ethereum ETFs gained $4 billion in net inflows, led by BlackRock’s ETHA with $262.6 million. Ethereum ETF assets now stand at $30.17 billion, about 5.4% of ETH’s market cap, compared to Bitcoin ETFs’ $144.6 billion, or 6.5% of BTC’s market cap. Corporate treasury moves intensified the shift, with BitMine Immersion acquiring $2.2 billion in ETH, becoming the largest corporate holder. Meanwhile, analysts warn that Bitcoin treasury strategies, modeled by MicroStrategy, face risks from negative carry trades and credit cycle stresses.

Terms & Concepts
  • Bitcoin ETFs: Exchange-traded funds that track the price of Bitcoin, allowing exposure to Bitcoin without directly holding the cryptocurrency.
  • Ethereum ETFs: Exchange-traded funds that provide exposure to Ethereum’s price performance without requiring direct ETH ownership.
  • Negative-Carry Trades: Investment strategies where the cost of borrowing to hold an asset exceeds the returns, creating long-term structural risks.