Centralized exchanges (CEXs) experienced a significant surge in trading volume in June, with both spot and derivatives trading witnessing substantial growth. This increase in activity was mainly fueled by BlackRock’s exchange-traded fund (ETF) filing and regulatory actions against major crypto exchanges like Binance and Coinbase in the United States.
Spot Trading Volume
Spot trading activity on CEXs rose by 16.4% in June, reaching a total volume of $575 billion. The surge in trading can be attributed to the positive sentiment generated by BlackRock’s filing for a spot Bitcoin (BTC) ETF. However, despite the growth, spot trading volumes on CEXs remain relatively low, making it the lowest quarterly volume since 2019.
Binance, one of the largest crypto exchanges, experienced a decline in its market share due to a surge in withdrawals following the Securities and Exchange Commission (SEC) lawsuit on June 5. As a result, Binance’s market share dropped by 1.40% to 41.6%. Binance.US, the US-based subsidiary of Binance, also witnessed a marginal decline in market share, dropping by 0.86% to 0.36%. Coinbase, another major exchange, saw the least decline among the three, with its market share sliding by 0.08% to 5.36%.
Derivatives Trading Volume
Derivatives trading volume on CEXs experienced a significant increase of 13.7% in June, reaching a total volume of $2.13 trillion. Binance emerged as the leading venue for derivatives crypto trading, with a trading volume of over $1.21 trillion. The OKX exchange followed closely behind, experiencing a 44.9% surge in activity and reaching a trading volume of $416 billion.
The CME exchange witnessed a substantial spike in Bitcoin futures volume, with trading reaching $37.9 billion, a 28.6% increase. This marked the highest volume traded on the derivatives exchange since November 2021. Additionally, Ether (ETH) futures trading volume grew by 9.93% to $8.91 billion during the month.
Institutional Trading Activity
The significant increase in BTC futures volume indicates heightened trading activity by institutional entities. Market participants are closely monitoring the SEC’s decision on the multiple spot Bitcoin ETF filings. The uncertainty surrounding the regulatory environment has led to increased speculation and trading in the cryptocurrency markets.
In June, both spot and derivatives trading volume on CEXs experienced notable growth. The surge in trading activity can be attributed to positive market sentiment generated by BlackRock’s ETF filing and regulatory actions against major exchanges. Despite this growth, spot trading volumes remain historically low, indicating the need for further market development. The increase in BTC futures volume highlights the heightened trading activity by institutional entities. As the markets eagerly await the SEC’s decision on Bitcoin ETF filings, the cryptocurrency landscape continues to evolve rapidly.