Bitcoin Weekend Trading Slumps as Traditional Finance and Spot ETFs Take Center Stage

Crypto News- According to insights from crypto research firm Kaiko, weekend trading volume for Bitcoin (BTC) has seen a significant downturn, hitting a low of 13% in 2024 compared to a quarter of total volume between 2018 and 2021. This decline is attributed to the increasing involvement of institutional players in the Bitcoin market.

Kaiko suggests that the drop reflects a deterioration in weekend liquidity, possibly stemming from heightened institutional activity and challenges in market infrastructure. Managing liquidity during weekends has long been a struggle for exchanges, given the continuous 24/7 trading in the crypto sphere, which clashes with the operating hours of traditional financial institutions.

Bitcoin Weekend Trading Slumps as Traditional Finance and Spot ETFs Take Center Stage

The closure of several crypto-friendly banks in the U.S. further exacerbated this issue, according to Kaiko’s observations. While the decline in weekend trading affected both U.S. and offshore exchanges, offshore platforms like Binance, HTX, OKX, Bybit, and Upbit maintained slightly higher trading activity.

Comparing offshore exchanges to U.S.-based ones like Coinbase, Kraken, and Bitstamp, Kaiko noted that liquidity conditions were notably poorer on Coinbase during weekends. Additionally, trading costs on Coinbase increased since the second quarter of the previous year, contrasting with a decline on Binance during the same period.

Interestingly, Bitcoin liquidity has seen a robust rebound following the launch of spot Bitcoin exchange-traded funds (ETFs) in the U.S. However, Kaiko highlights that there have been minimal transfers between ETF issuers and exchanges over weekends.