Bitcoin ETFs and the Shifting Power Dynamics in Crypto Trading
The rise of U.S. spot Bitcoin ETFs has ignited a seismic shift in the crypto market, challenging the dominance of centralized exchanges like Binance. These funds, now generating daily trading volumes between $5 billion and $10 billion, have captured 67% of Binance’s Bitcoin spot volume on active days, signaling a growing institutional appetite for regulated, indirect exposure to Bitcoin [1]. While Binance remains the largest single venue for global Bitcoin trading, with a daily spot volume of $4.1 billion and a total exchange-wide volume of $22 billion [2], the ETF-driven liquidity is reshaping how Bitcoin is traded, priced, and perceived as a reserve asset.
