The launch of spot ETFs in the US has had a positive impact on Bitcoin's order book liquidity and ability to trade at stable prices. Kaiko came to this conclusion, reports CoinDesk.
On February 19, the cryptocurrency market depth of 2% across 33 centralized exchanges increased to $539 million.
The metric means the total cost of orders to buy and sell Bitcoin within 2% of the market price.
The figure has risen to its highest level since October 2023 and by about 30% since the launch of exchange-traded funds in January.
Greater market depth or liquidity allows for large transactions in an asset without price slippage.
The share of American exchanges in the total rose to 48% from 14.3% in October. This gave reason to analysts to assume that it was the emergence of spot Bitcoin ETFs in the United States that contributed to the strengthening of the indicator. However, the price factor should also be taken into account, they say.
Despite the latest rise, market depth is still below the $800 million-plus level seen in November 2022 before the FTX collapse.
Let us recall that at the end of January, Bitcoin funds from BlackRock and Fidelity entered the top ten largest American ETFs in terms of fund inflows.
Experts suggested a flow of capital into products from ETP based on gold.
The United States has captured 83% of the global market for spot bitcoin exchange-traded funds, CoinGecko experts stated.
Source: Cryptocurrency
I am an experienced journalist and writer with a career in the news industry. My focus is on covering Top News stories for World Stock Market, where I provide comprehensive analysis and commentary on markets around the world. I have expertise in writing both long-form articles and shorter pieces that deliver timely, relevant updates to readers.
