Bitcoin ETFs Create Weekend Liquidity Gap

The introduction of spot Bitcoin exchange-traded funds (ETFs) has brought about a significant shift in the cryptocurrency market's liquidity dynamics. According to data from Kaiko, BlackRock's iShares Bitcoin Trust (IBIT) now trades around $16-18 billion daily, matching Binance and doubling Coinbase's volume.

U.S. trading sessions have become increasingly dominant, accounting for 47% of global Bitcoin spot volume, up from 38% before the ETF launch. This concentration of liquidity has resulted in a weekend gap, where trading volumes and prices experience a significant divergence during off-hours.

The data suggests that even moderately sized orders can move prices more on weekends due to thinner order books and wider bid-ask spreads on crypto-native exchanges. The impact is reflected in the widening of the average BTC-USDT bid-ask spread from 0.012% on weekdays to 0.028% on weekends.

Liquidity patterns also show clear daily rhythms, with peaks around 11:00 UTC when Asian, European, and U.S. markets overlap, and a sharp decline by 21:00 UTC. This persistence of structural trading cycles even during price movements highlights the importance of timing in liquidity management.