United States-based spot Bitcoin exchange-traded funds (ETFs) are now a major source of Bitcoin spot trading volume, reflecting growing institutional demand. These ETFs regularly generate $5 billion to $10 billion in daily volume on active days, at times surpassing most crypto exchanges. This surge in ETF trading volume signifies a notable shift in crypto investing as institutional investors increasingly embrace cryptocurrencies.

According to Julio Moreno, head of research at CryptoQuant, U.S. spot Bitcoin ETFs have become a significant avenue for investor exposure to Bitcoin. The daily trading volume for the 11 U.S. spot Bitcoin funds currently stands at $2.77 billion. While Binance still leads in spot trading volume, the volumes of US spot Bitcoin ETFs account for roughly 67% of the daily spot Bitcoin volume on Binance.

Nick Ruck, director at LVRG Research, emphasized the pivotal role of U.S. spot Bitcoin ETFs in price discovery and institutional adoption, highlighting their emergence as a dominant force in crypto markets.

However, Ethereum (ETH) spot trading presents a different picture. ETH spot trading is concentrated on Binance and Crypto.com, with ETFs ranking sixth with only 4%. This indicates slower institutional adoption of Ethereum compared to Bitcoin.

Recent data shows a shift in capital allocation, with Ethereum ETFs capturing higher inflows compared to Bitcoin ETFs. Over a five-day period, Ether ETFs saw $1.24 billion in inflows, more than double the $571.6 million inflows into Bitcoin ETFs.

Ki Young Ju, the founder and CEO of CryptoQuant, stated that Bitcoin ETFs now account for a quarter of the total spot trading volume. This indicates that the funds entering the market are more mature, with more institutional capital waiting to enter the field. This shift signifies a new era in the cryptocurrency sector, with more stable funds entering the market, fostering growing interest and trust in cryptocurrencies.