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Bitcoin ETFs hold $140B in assets, but exchanges lead with higher daily volumes
August 2025 saw $751M outflows from Bitcoin ETFs while Ethereum ETFs gained $4B
ETFs make Bitcoin mainstream, but exchanges provide deeper liquidity and speed
Bitcoin trading has changed a lot in the past two years. For a long time, most of the activity happened on big crypto exchanges like Binance, Coinbase, or Kraken. However, since the approval of spot Bitcoin Exchange Traded Funds in the United States in early 2024, a new question has started to come up: are ETFs now leading the market in trading volume? The short answer is no. ETFs are growing quickly, but they have not replaced traditional exchanges.
Spot Bitcoin ETFs give investors a way to buy Bitcoin without needing a crypto wallet or an account on an exchange. This has made the cryptocurrency easier to access for large institutions and everyday stock market investors.
As of late August 2025, US spot Bitcoin Exchange Traded Funds generate between $5 billion and $10 billion in daily trading on active days. Together, the 11 US spot ETFs average about $2.7 billion in daily trading volume. They also hold a significant share of Bitcoin itself.
The total net assets of spot Bitcoin ETFs are now close to $140 billion. Globally, ETFs make up around 25% of all BTC trading volume, up from only 10% in October 2024.
Also Read: 5 Major Changes Bitcoin ETFs Have Caused in the Market
Even with this growth, exchanges remain far ahead. Binance, the largest crypto exchange in the world, handles around $18 billion in BTC trading on busy days and more than $22 billion daily when counting all trading pairs. This means Binance alone often does more than double the daily Bitcoin trading volume of all US spot ETFs combined.
Crypto exchanges also offer flexibility that ETFs cannot. They allow 24/7 trading, instant withdrawals, and access to other digital assets. These features keep exchanges central for active traders and global markets.
In August 2025, spot BTC ETFs faced challenges. They recorded a net outflow of $751 million during the month, showing that some investors pulled money out. At the same time, Ethereum ETFs gained almost $4 billion in inflows, suggesting that more money shifted toward Ether.
Also Read: What are Crypto ETFs and How Do They Work?
Early August numbers highlight this shift as well. Ethereum ETFs attracted about $1.24 billion in just four trading days, compared to $572 million flowing into Bitcoin ETFs during the same period.
ETFs have clearly changed the way investors access BTC. They provide a safe and regulated entry point, which has helped attract traditional capital. This makes Bitcoin more visible in mainstream finance and gives institutions a reliable way to hold it.
However, trading data shows that Exchange Traded Funds are not yet leading the market. Exchanges like Binance continue to handle the majority of Bitcoin activity because they offer deeper liquidity, faster transactions, and broader access to digital assets.
The growth of crypto ETFs shows that Bitcoin is no longer just a niche product traded by early adopters. It is becoming part of the traditional financial system. But for now, exchanges remain the main stage where most of the action happens.
