Binance Dominates Bitcoin & Ethereum Trading Despite ETF Growth

Bitcoin and Ethereum are seeing major activity as both retail and institutional investors pour money into exchanges and ETFs.

Spot Bitcoin ETFs Gain Momentum

U.S. spot Bitcoin ETFs are emerging as a key player in the market. On high-volume days, they handle between $5–10 billion in trades, sometimes surpassing most crypto exchanges. This highlights the growing role of institutional investors in the Bitcoin’s market.

Binance Still Leads Bitcoin and Ethereum Trading

Despite the rise of ETFs, exchanges remain the primary choice for traders. Data from CryptoQuant shows Binance consistently leading spot trading volumes for both Bitcoin and Ethereum. On peak days, Bitcoin trading on Binance reaches $18 billion, while Ethereum ranges between $8.8–11.1 billion.

Ethereum trading, in particular, remains exchange-driven. Since the 2024 U.S. presidential election, Binance has captured 35% of Ethereum spot trading, followed by Crypto.com at 20%. ETFs only account for 4%, showing slower institutional adoption compared to Bitcoin.

Ethereum ETFs Attract Strong Inflows

Even so, Ethereum ETFs are gaining traction. Over the past four trading days, they pulled in $1.24 billion, more than double the $571.6 million that flowed into Bitcoin ETFs over the same period. According to SoSoValue, Ethereum ETFs now hold a net total of $13.68 billion as of August 28.

ETFs vs Spot and Derivatives: Who Really Drives the Market?

Analyst Darkfrost argues that ETFs aren’t the only force moving prices. While ETF inflows do play a role, especially for Ethereum, he says the real action remains in spot and derivatives markets.

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At the same time, Binance is seeing a shift in investor behavior. The average deposit size has surged from 0.8 BTC in early 2024 to 13.5 BTC today, showing that whales are becoming more active on the platform. Once considered a retail-focused exchange, Binance now appears to be attracting bigger players this cycle.

Market Cooling Before the Next Leg?

CryptoQuant analysts note that 90% of Bitcoin supply is currently in profit, a level that has historically signaled market euphoria and preceded pullbacks. They believe the market is settling into a slower, longer cycle. Unlike past sharp surges, today’s growth is flattening due to ETF influence and institutional participation.

Capital is also beginning to flow into altcoins, which can temporarily dampen momentum in Bitcoin and Ethereum. However, analysts point out that a potential September rate cut and possible altcoin ETF approvals in October could trigger a fresh uptrend heading into fall and winter 2025.

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