Data from The Block Research shows that the rally driven by spot bitcoin exchange-traded funds has stopped translating into increased trading volumes for the cryptocurrency.
The seven-day moving average of daily cryptocurrency trading volume has fallen from a recent high of $19.4 billion on June 27 to $14.2 billion on July 8, according to The Block. The figure was just above $15 billion on Friday.
Meanwhile, the price of Bitcoin has remained relatively flat over the same period. A downturn in cryptocurrency trading activity on spot exchanges could indicate that activity has shifted into derivatives or over-the-counter trading.
Since BlackRock submitted its application for a spot bitcoin ETF on June 15, the price of bitcoin has risen more than 18%. CME’s bitcoin futures market open interest has reached $2.7 billion.