Crypto trading volumes increase for the first time in three months due to optimism surrounding ETFs.

Crypto trading volumes increased in June, marking the first growth in three months. This surge in trading activity came after asset manager BlackRock and other major institutions submitted proposals for spot bitcoin exchange-traded funds (ETFs), generating optimism in the market.

A report by CCData revealed that combined spot and derivative trading volumes on centralized exchanges rose by 14% to reach $2.71 trillion. This is the first monthly increase since March.

In June, several prominent U.S. institutions, including Invesco, WisdomTree, and Fidelity, filed or refiled for spot bitcoin ETFs with the U.S. Securities and Exchange Commission (SEC).

CCData stated, “The increase in volatility following the SEC’s lawsuit against Binance US and Coinbase, along with the positive outlook in the market following the filing of spot Bitcoin ETFs by BlackRock and Fidelity, contributed to the rise in trading activity last month.”

However, it’s important to note that spot trading volumes remain historically low. The report highlights that spot trading volume in the second quarter was the lowest since Q4 2019.

On the other hand, the derivatives market experienced a 14% increase in volumes in June, accounting for 78.7% of the crypto market. This percentage is slightly lower than May’s 79.1% and signifies the first decline in derivatives market share in four months. The report suggests that the ETF filings prompted the accumulation of crypto assets in the spot market.

The report also mentions that the total derivatives volume traded on the Chicago Mercantile Exchange (CME) rose by 23.6% in June, reaching $48.3 billion.

“Institutional interest was particularly notable in BTC futures, with volumes increasing by 28.6% to $37.9 billion. This is the highest volume traded on the exchange since November 2021,” the report adds.

Edited by Sheldon Reback.