Cryptocurrencies
‘Alameda Gap’ Keeps Bitcoin Volatile Even as ETFs Boost Trading Volume
- Bitcoin ETFs have seen billions of trading volume since launch
- Liquidity gaps remain in the crypto market post-FTX blowup
The void left from the demise of FTX and Alameda Research still hasn’t been filled.
Photographer: Dan Kitwood/Getty ImagesThis article is for subscribers only.
A dearth of liquidity in the digital-asset market continues to roil Bitcoin, even with the first US exchange-traded funds to hold the cryptocurrency logging billions of dollars in trading volume since their debut.
The ability to easily or quickly buy and sell the digital currency hasn’t improved since the 10 funds began trading Jan. 11, traders say. Liquidity is especially important in a relatively new market such as crypto, where a single large trade can have an outsized impact on an asset price, raising the risk of manipulation.