LMAX Digital Volumes Dip in March

The extended lull in cryptocurrency volatility looks to be acting as a drag on institutional activity with LMAX Digital volumes dipping in March from February to remain at recent lows, with the venue exceeding $1 billion in daily volume three times during the month, less frequently that recent months.

Total cryptocurrency volume in March was $20.2 billion, down from $23.2 billion in February, with the dip largely led by Ethereum, activity in which dropped from $8.5 billion to $5.2 billion. Bitcoin activity was actually slightly higher at $13 billion, from $12.8 billion in February, while activity in other coins was broadly steady.

Year-on-year, activity remains very subdued. In March 2021, LMAX Digital handled $42.4 billion in total volume, $30.3 billion in Bitcoin and $7.9 billion in Ethereum.

The decline in activity was felt across all client segment, with non-bank/HFT firms responsible for $8.6 billion and hedge funds $7.3 billion, re-establishing the former as the busiest users of the platform after the two nearly matched volumes in February. Brokers were responsible for just over $2.1 billion, broadly unchanged from February, while the balance of activity made up by other participants dipped to just under $2.1 billion from just above $2.5 billion. Year-on-year activity from the latter segment is broadly unchanged, but the three other client segments are all sharply lower.