Rising Volumes on Centralized Trading Platforms
Last month, trading volumes on centralized trading platforms reached the highest level since June 2022, topping $1.34 trillion after a 34% rise, according to a report by CCData. The quarterly spot volume in the last quarter of 2023 was at $2.99 trillion, representing a significant increase over the previous quarter.
Derivatives Trading Volumes
At the same time, derivatives trading volumes on centralized trading platforms rose by 26.3% over the past month to $3.34 trillion, marking the highest monthly figure seen since December 2021 after a third consecutive monthly increase.
Binance and the CME Exchange
In December, Binance saw a significant spike in spot trading volumes, reaching $425 billion. Binance’s market share among centralized spot exchanges climbed by 0.70% to 32.5%, and Binance’s derivatives trading volume also witnessed a notable increase of 25% to $1.58 trillion. Additionally, trading activity on the CME exchange saw a notable uptick, with derivatives trading volume climbing by 3.35% to reach $70.2 billion, the highest since November 2021.
Bitcoin and the Financial Powerhouses
Bitcoin is currently trading at $45,600 after surging by more than 170% over the last 12 months amid expectations of a spot Bitcoin exchange-traded fund (ETF) being launched in the United States. Major financial powerhouses are making inroads into the world of Bitcoin and cryptocurrency after a race to list the first spot Bitcoin ETF kicked off in the country. At least eight financial behemoths are “actively working to provide access to Bitcoin and more,” according to CoinShares CSO Meltem Demirors.
Hot Take: Institutional Investment into Cryptocurrency
As the cryptocurrency market continues to gain momentum, institutional investors are leaning toward Bitcoin and cryptocurrency investments. The introduction of a spot Bitcoin ETF in the U.S. is expected to be a significant development, ushering in a new wave of investors looking to gain exposure to Bitcoin without directly handling private keys or delving into blockchain-based transactions. With major financial institutions actively working to provide access to Bitcoin and more, the overall investment into cryptocurrency is expected to increase, signaling a new era in the digital asset space.
By
By
By
By