Weekend Trading of Bitcoin Dropped To Historic Lows as ETF Influence Took Hold

• The weekend trading of Bitcoin drops to 16% in 2024—affected by spot Bitcoin ETFs running in sync with the traditional equity schedules.
• In particular, Kaiko attributes this decrease in Bitcoin weekend trading and volatility to the introduction of spot Bitcoin ETFs and traditional trading hours.
• March 2023 saw a decline in the volume of weekend trade for Bitcoin as several major banks failed.

According to Kaiko, a cryptocurrency research firm, this year, Bitcoin’s weekend trading hit a historic low of only 16%. What is clear here is the relationship with recourse to the approval of spot Bitcoin ETFs, which shifted behaviours back to traditional equity exchange schedules.

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Kaiko also reveals a slump in Bitcoin’s famous volatility. Previously known for crazy weekend fluctuations, Bitcoin’s trading volume on these days has fallen off a cliff. The share of weekend trading once used to be as high as 28 percent since 2019. According to Kaiko’s Senior Analyst, Dessislava Aubert, this steep fall is an effect of ETF.

Impact of Spot Bitcoin ETFs

Unsurprisingly, the spot Bitcoin ETFs, which launched in early January, caused a stir in trading. After launching ETFs, BTC surged to new all-time highs. Despite the subsequent retracement, Bitcoin is still up about 45% this year. Unlike other cryptocurrencies that trade non-stop, Bitcoin ETFs follow traditional stock schedules, leading to no weekend trading. This shift has caused an increase in Bitcoin trading on weekdays, particularly between 3 p.m. and 4 p.m.

Kaiko observed that the proportion of Bitcoin traded during this benchmark fixing window rose to 6.7% from 4.5% in late 2023. This period is crucial as ETF owners determine Bitcoin’s price to calculate the ETF’s net asset value.

External Factors Affecting Bitcoin Trading

Kaiko also noted external factors affecting Bitcoin’s weekend trading volume. An effect was caused by Silicon Valley Bank and Signature Bank collapsing in March 2023. These banks’ uninterrupted payment networks allowed real-time crypto trading. Their collapse hindered market makers’ ability to buy and sell Bitcoin over weekends.

Additionally, the market’s focus has shifted towards structured trading schedules. This shift has led to a reduction in the typically volatile weekend trading environment.

Bitcoin’s weekend trading has declined significantly due to the influence of spot Bitcoin ETFs and external market factors. The shift towards weekday trading aligns with traditional equity schedules. Despite these changes, Bitcoin’s price has shown resilience, maintaining a 45% increase this year.

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