The market depth for Bitcoin and Ethereum on the three exchanges Coinbase, Kraken and Gemini has improved significantly since the beginning of 2020 as the two major cryptocurrencies mature, according to the cryptanalysis provider of Coin Metrics.

Bitcoin and Ethereum see the market deeper

Analysts describe that the market for both Bitcoin and Ethereum Maturity is important as it allows large financial institutions with more complex trading and execution strategies to trade assets with minimal slippage costs.

“Substantial liquidity on many exchanges means that a particular market order has little impact on the prevailing market price.” said a report from Coin Metrics. The report also added that more liquidity also improves pricing, making market manipulation “more expensive and less likely”.

With regard to Bitcoin in particular, Coin Metrics says that the depth of the market on the three tested exchanges has “improved in general”. The quality of the depth of market has also improved.

Similarly, the report says that ETH also had “a transformative year 2021,” with order book data showing the market for the second most valuable cryptocurrency is maturing.

“On Coinbase and Kraken, there is now usually enough ETH on each side of the market to absorb a market order of $ 1 million with less than 0.2% slippage.” The report shows the liquidity in the ETH market.

Finally, the report also suggests that regulators look to the exchanges for liquidity in order to gauge the risk of market manipulation and the overall maturity of a market.

“As regulators continue to consider exchange-traded funds” [ETF] and other crypto investment products, the depth of the order books on crypto exchanges is essential data to look out for. ” Coin metrics completed.

The bitcoin market is ripe as more and more bitcoin futures ETFs are registered

Understanding that the BTC market in particular is mature could become crucial for regulators as decision dates for several ETFs in the US seem to be drawing closer.

Bloomberg ETF analyst Eric Balchunas pointed out on Twitter on Wednesday that ETF issuer Ark Invest has just applied for a new Bitcoin futures ETF under the ticker symbol ARKA, which Balchunas regards as a token. will soon approve an ETF.

Meanwhile, the same analyst also announced yesterday that Valkyrie, one of several other issuers that have signed up for a Bitcoin futures ETF, has updated its prospectus by adding a ticker on Start. “

Around the same time, Bitwise Asset Management applied for a physically deposited BTC ETF with NYSE Arca.

“It will contain actual BTC, * not * the future. There is already a separate BTC futures-based Bitwise ETF profile. But the actual BTC is better. And we believe it’s finally possible, ”said Matt Hougan, Bitwise Chief Investment Officer.

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