The digital asset market has experienced a significant rally since early April, marked by a notable shift in global trading activity. During this period, Asia’s trading hours have gained a larger share of the worldwide spot trading volume for Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), while the United States has seen a steady decline.
Data tracked by institutional crypto prime broker FalconX reveals that the U.S. share of spot trading volume for these three major tokens has dropped below 45% on a 30-day simple moving average basis. This represents a decline from a historic high of over 55% recorded at the beginning of 2025. The latest reading is the lowest since the pro-crypto Donald Trump won the November presidential election.
In contrast, Asian trading hours now account for nearly 30% of global trading activity, with Europe making up the remainder.
Understanding the Shift in Trading Dynamics
According to FalconX, the slowdown in U.S. activity reflects changes in investor portfolios that are influencing price movements.
"This may indicate flows from non-U.S. investment portfolios or suggest that U.S. investors are focusing more on markets beyond spot crypto," said David Lawant, Head of Research at FalconX, in a report shared with CoinDesk.
Data from CoinDesk shows that Bitcoin, the leading cryptocurrency by market value, has surged by 40% since early April, when it hit lows below $75,000, to reach $105,000. Over the same period, Ethereum and Solana have soared by 87% and 68%, respectively.
The Low Volume Bitcoin Rally
Despite Bitcoin’s price surge to new highs, global spot trading activity has not returned to the levels seen earlier this year.
FalconX data indicates that the daily trading volume in BTC spot markets exceeded $15 billion on a 30-day rolling average after the November election but declined during the April sell-off and has since remained below $10 billion.
Low-volume rallies are often viewed as potential bear traps. However, this instance may differ due to the growing popularity of ETFs as investment vehicles.
The Rising Role of ETFs
In less than two months, the cumulative trading volume of the 11 U.S.-listed spot Bitcoin ETFs has surged from about 25% to a record 45% of global spot BTC market trading activity, according to FalconX.
This spike in ETF trading volume is largely driven by bold directional bets rather than non-directional arbitrage strategies, such as cash-and-carry trades that involve long ETF positions and short CME BTC futures positions.
Since their launch in January 2024, these 11 spot ETFs have accumulated $44 billion in net inflows, according to Farside Investors. BlackRock’s IBIT, the largest among them, attracted $6.35 billion in May alone—the highest level since January 2025—signaling growing institutional demand for BTC amid trade tensions and bond market volatility.
"All of this points to room for growth and suggests that ETFs may remain a primary force behind demand in this rally," Lawant noted.
👉 Explore more strategies for tracking market trends
Implications for Global Investors
The shifting geographic distribution of trading volume highlights the evolving nature of crypto markets. As Asian markets gain influence, global investors may need to pay closer attention to trading patterns and liquidity during Asian hours.
This trend also underscores the growing acceptance and integration of digital assets into diverse investment portfolios worldwide.
Frequently Asked Questions
Why is the U.S. share of crypto trading volume declining?
The decline may be due to U.S. investors diversifying into other markets or increased participation from non-U.S. investors. Regulatory developments and market sentiment also play significant roles.
How do ETFs affect Bitcoin’s trading volume?
ETFs simplify access to Bitcoin for institutional and retail investors, often leading to higher trading volumes within the ETF market rather than traditional spot exchanges.
What does low trading volume during a price rally indicate?
Low volume can signal cautious participation, but in this case, it may reflect a shift toward ETF-based trading rather than declining interest.
Are Asian markets becoming more influential in crypto?
Yes, Asian trading hours now represent nearly 30% of global activity, reflecting growing regional engagement with digital assets.
How can investors adapt to these changing dynamics?
Staying informed about global market trends and diversifying trading strategies can help investors navigate shifting volume patterns.
What is the outlook for crypto ETFs?
With continued institutional inflows and growing acceptance, crypto ETFs are likely to remain a major driver of demand and liquidity.