Spot ETF Sparks $1.1 Trillion Trading Surge — The Ultimate Catalyst For Bitcoin, Ether, Solana, Cardano, XRP Price Explosions?
In December 2023, the cryptocurrency market witnessed an unprecedented surge in spot buying and selling, surpassing the $1 trillion mark for the primary time in over a 12 months. Information compiled by The Block revealed that the whole spot buying and selling quantity throughout exchanges reached an astounding $1.1 trillion, marking a considerable resurgence from earlier months.
This surge was notably increased than the final recorded occasion in September 2022, when the buying and selling quantity hit $1.03 trillion. December’s figures showcased a outstanding rebound and set a brand new month-to-month file since Might 2022, when buying and selling quantity peaked at $1.35 trillion.
Binance, a number one crypto alternate, continued its dominance by contributing 39.3% to December’s complete quantity, amounting to $432.7 billion in US greenback phrases. Following intently behind was South Korea-based Upbit, securing the second place with an 8.3% share valued at $91.8 billion and OKX at 8% with a complete of $87.5 billion.
Whereas Binance has traditionally led the market, the alternate has skilled a drop in its market share amidst elevated regulatory scrutiny. In distinction, Upbit and OKX witnessed a rise of their market shares throughout this era.
Spot Bitcoin ETF Hypothesis Driving World Spot Trading Quantity?
These statistics, sourced from CoinGecko, mirror a shifting panorama within the crypto alternate market. The surge in buying and selling exercise in December 2023 coincided with heightened anticipation surrounding the potential approval of a spot Bitcoin exchange-traded fund (ETF) by the US Securities and Trade Fee (SEC), doubtlessly slated for approval as early as January 10.
In accordance with Bloomberg’s ETF analyst, Eric Balchunas, there’s a ten% probability of a brief postponement for the approval of the spot Bitcoin ETF this month. Balchunas talked about that the SEC may request extra time if the ETF isn’t outright declined. Nonetheless, this transfer may danger authorized actions from candidates like Grayscale, which has similarities to a direct rejection.
A number of ETF proposals underwent SEC scrutiny, igniting investor safety and market manipulation worries. The SEC has been in talks with candidates like Grayscale, Constancy Investments, and Franklin Templeton, indicating elevated regulatory involvement within the ETF house.
The unprecedented buying and selling quantity throughout this era signifies the rising significance and affect of regulatory choices on Ether, XRP, Cardano, Solana markets, with market individuals intently monitoring developments surrounding the speculated Bitcoin ETF approval.