The United States has the largest Bitcoin trading volume after Malta. This according to a new report that reveals new findings contrary to earlier beliefs that the U.S handles only 1 percent of global Bitcoin trading volume.
The new findings were compiled by a virtual currency firm that seeks approval from the United States Securities and Exchange Commission to launch a digital currency ETF.
Bitwise Asset Management, the crypto firm that compiled the new report, claims that Bitcoin trading volumes from markets other than the U.S and Malta are artificial. The firm added that crypto regulations in the United States are the best compared to other countries.
The report which was filed with the United States Securities and Exchange Commission noted that the U.S handles 29 percent of all the global Bitcoin trading volume. This is only second to Malta which handles roughly 41 percent of the Bitcoin trading volume on a global scale. Taiwan is third with approximately 14 percent, U.K and Japan occupy 4th and 5th positions with 11.6 and 5.0 percent respectively.
Some exchanges inflate their trading volume to appear higher in rankings. That status can help to attract more users, generating fees… While some [trade sizes and volumes] show ‘natural patterns,’ such as prices and spreads that move similarly, others are ‘idiosyncratic and highly suspicious.’
Among the top U.S crypto exchanges hailed by the report as having consistent Bitcoin trading volumes are Kraken and Coinbase. However, the report did not include data form South Korean cryptocurrency exchanges citing local rules which make S. Korea an “isolated market.”
Do you agree with the report that exchanges are inflating their Bitcoin trading volume to attract traders and generate higher revenues in the process?
Let us know your thoughts in the comments section below.