Bitcoin
Bitcoin volume share during US market hours hits record high
(Bloomberg) — Participation in Bitcoin trading that occurs during U.S. market hours has reached an all-time high, accounting for 46% of this year’s year-to-date volume through April, according to a cryptocurrency research firm.
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Research suggests that the increased participation in trading may be linked to the January launch of spot Bitcoin exchange-traded funds, as volume increased near the start and close of U.S. trading hours, according to Kaiko Research. ETFs calculate their net asset values every day of the week at the close of U.S. stock exchanges, which Kaiko says increases price discovery and arbitrage trading. Thursday was the day of the week with the highest trading participation at that time, with around 15% of the accumulated daily volume, Kaiko found.
ETFs have attracted nearly $13 billion in net inflows since they were launched four months ago, making them one of the most successful product category debuts in the industry’s history. Demand has slowed recently, with just $925 million net flowing into the funds so far in May, according to data compiled by Bloomberg. Lately, the crypto market has become obsessed with the prospects of US regulators approving or rejecting ETFs that invest directly in Ether, the second-largest cryptocurrency. The Securities and Exchange Commission’s decision on at least one spot Ether ETF application must be made by May 23.
Read more: Ether ETF Hopes Revived Amid Flurry of App Updates
While Bitcoin trading volume during trading hours in the US has mostly recovered to 2022 levels, volume during trading hours in Asia remains significantly lower, Kaiko also found.
Bitcoin’s performance during US market hours also shows that the cryptocurrency’s volatility is moderate when compared to previous hours, according to Toby Winterflood, chief product officer at CCData.
“This literally shows the impact that these ETFs have had, not only on Bitcoin’s correlation with the S&P, but also on its potential decorrelation with other altcoins and other cryptocurrencies,” said Winterflood. “I don’t think we will necessarily see that change until potentially ETH, for example, is also approved for an ETF.”
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