US Bitcoin ETFs Rival Binance as Institutional Demand Soars

United States spot Bitcoin exchange-traded funds (ETFs) are now driving billions in daily trades, rivaling global crypto exchanges. Data from CryptoQuant shows that US Bitcoin ETFs are becoming a major channel for institutional access to Bitcoin.

US Bitcoin ETFs Driving Daily Trading Activity

Julio Moreno, the head of research at CryptoQuant, says that trading of Bitcoin spot in the US-based ETFs has emerged as a major exposure to investors. These funds and others have daily volumes ranging between 5billion and 10billion on active trading days. This activity tends to compete, or even overtake, major exchanges.

Binance remains the largest platform in terms of spot activity, but ETFs are narrowing the gap. The total daily trading volume of 11 US-based Bitcoin ETFs has reached about $2.77 billion. This represents around 67% of Binance’s spot Bitcoin trading volume, which is recorded at $4.1 billion by CoinGecko.

The overall volume of Bitcoin trading, including both exchanges and ETFs, has surged in recent weeks. Bitcoin spot volume has reached $18 billion on peak days. These numbers show the growing role of regulated ETFs in the wider trading ecosystem.

Binance Leads But ETFs Gain Market Share

Despite strong ETF activity, Binance continues to dominate spot trading with its broad selection of pairs. Its total daily volume, covering all assets, stands at about $22 billion. Bitcoin contributes a large portion of this, alongside Ethereum, which has seen peak volumes of $11 billion.

US-based Bitcoin ETFs, however, are proving to be attractive to institutional investors seeking regulated exposure. The BlackRock iShares Bitcoin Trust (IBIT) is the largest among them, holding nearly 40% of recent inflows. Since Monday, IBIT has received about $223.3 million in new capital.

Recent statistics have also indicated that Bitcoin ETFs have inflows totalling $571.6million in the last four trading days. This implies that the inflows are not as high as they used to be, but investor interest in regulated Bitcoin products is high.

Ether ETFs Record Higher Inflows

While Bitcoin ETFs dominate spot trading volumes, Ether ETFs have recorded stronger inflows during the same period. In just four trading days, US-based Ether ETFs attracted $1.24 billion in new capital, more than double the inflows into Bitcoin funds.

Ether ETFs have also maintained a consistent flow of new investments. Since August 20, these funds have not registered a single day of outflows. Over the last month, more than $4 billion has entered Ether ETFs, representing 30% of total inflows since their launch.

According to Moreno, ETH spot trading remains concentrated on Binance and Crypto.com, while ETFs are currently ranked sixth in terms of share. This means that Ethereum ETFs are gaining traction, but their adoption among institutions is still developing compared to Bitcoin.

ETFs Reshape Crypto Market Liquidity

Industry researchers state that ETFs are now a central part of market liquidity and price formation in digital assets. Furthermore, they are becoming a fundamental gateway for traditional capital.

As ETFs continue to grow, they are transforming the way Bitcoin and Ethereum are traded. Their presence offers a regulated entry point for investors, which expands market participation. This has helped ETFs become a major driver of Bitcoin spot trading volume in the United States.