Analysts at Kaiko say buy-price spreads on major U.S. exchanges such as Coinbase and Kraken have tightened approvals for post-spot ETFs, indicating stronger market liquidity and depth. .
Bitcoin (BTC) bid-price spread, which measures the difference between the highest bid and lowest sell prices, has decreased significantly since approval, indicating improved market liquidity and increased trading activity.
In a recent research report, Kaiko analysts said that US-based cryptocurrency exchange Kraken’s spread volatility was highest during January, peaking at 10 basis points on January 20th. It revealed that. Similarly, the spread between Bitstamp and Coinbase also peaked between January 20th and January 20th. It was 6.7 basis points and 1.7 basis points on the 8th and January 13th, respectively, but has plummeted to less than 1 basis point in recent weeks.
Kaidaka believes that this trend is not limited to the U.S. market or Bitcoin, as the average bid-price spread for the most liquid BTC and Ethereum (ETH) trading pair is also decreasing across various crypto exchanges. It pointed out.
“Coinbase and Kraken saw the biggest declines, while the decline was less pronounced for Binance and OKX, which already offer very low spreads.”
Analysts say the approval of spot exchange-traded funds (ETFs) will ultimately spur a new wave of competition among exchanges, with Coinbase already announcing fee waivers for large traders. Spreads are expected to fall further.
As previously reported by crypto.news, the U.S. Securities and Exchange Commission (SEC) has given the green light to all spot Bitcoin ETF applications. Nevertheless, Gary Gensler, who has remained critical of cryptocurrencies since taking over the leadership of the U.S. financial regulator, said that despite approving spot ETFs, the SEC “We do not endorse or support Bitcoin,” they reiterated in a statement.