According to Bloomberg, Bitcoin trading during US market hours has hit a record high, accounting for 46% of the cumulative volume for this year through April. This data comes from a study conducted by Kaiko Research, a cryptocurrency research firm. The study suggests that the increased share of trading could be associated with the launch of spot-Bitcoin exchange traded funds (ETFs) in January. The volume has seen a rise near the beginning and end of US trading hours.
Kaiko Research points out that the ETFs calculate their net asset values each weekday at the close of US stock exchanges, which enhances price discovery and arbitrage trading. Thursdays have been identified as the day with the highest share of trading during these hours, with nearly 15% of the cumulative daily volume. Since their launch four months ago, the ETFs have drawn almost $13 billion in net inflows, marking them as one of the most successful product category debuts in the industry's history.
However, the demand has recently slowed down, with only a net $925 million flowing into the funds in May. The crypto market is currently focused on the prospects for US regulators to approve or reject ETFs that invest directly in Ether, the second-largest cryptocurrency. A decision by the Securities and Exchange Commission on at least one spot-Ether ETF application is expected by May 23.
While Bitcoin trading volume during US hours has mostly recovered to 2022 levels, volume during Asian trading hours remains significantly lower. The performance of Bitcoin during US market hours also indicates that the cryptocurrency’s volatility is less compared to previous hours. This demonstrates the impact that these ETFs have had, not only on Bitcoin’s correlation with the S&P, but also its potential de-correlation with other altcoins and other cryptos.