Crypto Volumes Surge in March as Bitcoin ETFs Fuel Activity

Volumes in the world of cryptocurrency trading have surged to new record highs in March this year, with the combined spot and derivatives activity on centralised exchanges totalling a record $9.12 trillion.

This is according to digital assets data provider, CCData, which adds that total volumes were 93% higher than in the previous month as demand for ETFs fuelled bitcoin buying and trading interest. Spot trading volumes in the crypto space amounted to $2.94 trillion as bitcoin hit new all-time highs, the highest since May 2021 and representing a 121% increase on the month.

The return of activity into digital asset markets has also boosted derivatives volumes, which hit a new record at $6.18 trillion in March, an 87% growth from February.  It should be noted that with data reported in dollars, the 20%-plus rise in bitcoin will boost growth significantly. LMAX Digital, which reports volumes in coins and dollars, saw a 23% increase in coin trading activity from February to March, which its dollar volumes rose by 60%.

In a sign of growing institutional involvement, derivatives trading on the CME also jumped to new records with a 61% growth in volumes to hit $155 billion. While the intense increase was mainly down to bitcoin, in which $123 billion worth of contracts traded, activity in ether futures also rebounded to $20.1 billion, or levels last seen in November 2021.

CCData’s latest Exchange Review notes that price action on the CME remains a key driver for bitcoin’s prices across markets, because open interest on the Chicago-based exchange continues to be higher than its crypto counterparts. “CME continues to be an influential venue for the price action of bitcoin with the open interest on BTC instruments rising 47.1% to $11.7 billion in March,” the monthly study’s authors write. “The open interest on BTC instruments continues to be higher than its centralised exchange counterparts, such as Binance, which reports an open interest of $8.53bn for the BTC instruments traded on the exchange.”

Still, Binance has retained its crown as the market share leaders among the top 12 derivatives exchanges.

Overall, open interest in March hit new highs on crypto derivatives exchanges as traders leveraged up their bets, pushing the overall figure to $72.4 billion. The amount of leverage in the market was highlighted by funding rates remaining positive throughout the month, CCData says.