Bitcoin spot trading volumes on centralized exchanges returned to highs last seen during FTX's crash due to continued daily demand for ETFs investing in the major cryptocurrency.
According to Kaiko data, spot Bitcoin (BTC) trading volumes rose to a 16-month high on February 28, with $34 billion worth of cumulative trades on CEXs. Binance led BTC trading on the day, recording over $17 billion in Bitcoin trading volume.
Bybit lagged behind at $3.5 billion, while Coinbase reached nearly $3 billion as the platform experienced a surge in traffic and technical difficulties. Coinbase CEO Brian Armstrong said the crypto exchange is prepared for 10 times its usual traffic. However, this was not enough to handle a wave of interest in the leading cryptocurrency by market capitalization.
Apps will now be restored.
We had modeled an approximately 10x increase in traffic and stress tested it. This number was exceeded.
It is expensive to deploy oversized services, but we must continue to work on autoscaling solutions and address any remaining bottlenecks. Thank you for… https://t.co/JXVppV57AF
— Brian Armstrong 🛡️ (@brian_armstrong) February 28, 2024
OKX and Kraken recorded nearly $4 billion worth of Bitcoin spot trading, while BTC rose over 10% to over $64,000 before falling back to around $62,000 at press time.
Bitcoin derivatives trading is worth nearly $200 billion
According to Laevitas data, traders also invested capital in crypto derivative products. BTC derivatives recorded $182 billion in trading volume in the last 24 hours. This accounted for 94% of the $358 billion traded in crypto derivatives, including futures, perpetual contracts and options.
Meanwhile, the total number of open notional options on crypto exchange Deribit reached an all-time high of $26 billion, further confirming the huge demand for digital asset derivatives.
Open interest in crypto options | Source: Deribit
Spot BTC ETFs continue to see daily net inflows
Spot BTC ETFs recorded another day of net inflows, with BlackRock leading the way. Nine of these products saw daily net inflows totaling $673 million, and BlackRock hit a new all-time high of $612 million in a single day, SoSoValue reported.
Grayscale saw $216 million in outflows, while the company's converted GBTC ETF continued to see millions of dollars in daily outflows. Investors have traded over $7 billion worth of spot Bitcoin ETFs in less than two months.
Spot BTC ETF daily flows | Source: SoSoValue
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