While the Binance.US market share remains on the downside, the Coinbase share has somehow managed to appreciate.
The market share of US-based crypto exchange Binance.US has reportedly dropped over 20% in the past couple of weeks. A July 5 Reuters report quoted data from Kaiko as suggesting that the exchange held a little above 22% of the market back in April. However, as of June 26, its share had dropped to nearly 0.9%.
Binance.US Market Share Suffers Huge Blow as Coinbase Sees Boost
Meanwhile, it might be safe to say that this situation is not unrelated to the exchange’s recent run-in with federal regulators. This follows after the United States Securities and Exchange Commission (SEC) recently filed a suit against Binance.US, Binance, and CEO Changpeng Zhao (CZ).
The June 5 lawsuit alleges that Binance had been operating as an unregistered securities exchange. And it might also be interesting to note that the Commodity Futures Trading Commission (CFTC) had earlier filed a similar lawsuit against Binance and CZ. That was as far back as March.
While Binance.US’ market share remains on the downside, Coinbase’s share has somehow managed to appreciate. That is even though the crypto exchange is also currently facing a similar lawsuit from the SEC.
According to the data pulled by Reuters, Coinbase’s market share in the US saw a 7% boost. Within the same period as Binance.US, it went from approximately 48% to 55%.
But the surge appears to be related to Coinbase being named as a surveillance partner in about three SEC filings where asset managers are applying to launch a spot Bitcoin exchange-traded fund (ETF) in the United States. One such is an updated application by BlackRock.
Coinspeaker reported on June 16 that BlackRock joined the race for a spot Bitcoin ETF. And though the SEC has not approved any such applications, BlackRock’s part in the race has seen investor sentiment rising, albeit unsurprisingly. The firm has also been tipped to have a 50% chance of having its application approved by the SEC. As a result, the combined spot and derivatives trading volume on centralized exchanges has now surpassed $2.7 trillion.