Crypto Spot Trading Stumbles as Derivatives and ETFs Steal the Show

Despite a bullish backdrop, cryptocurrency spot trading took one other hit in Q2 2025, dropping by 22%, in response to a fresh report. The slump continues, whilst the broader market stays optimistic.

Spot Trading Volumes Continue to Decline

Crypto spot trading on leading centralized exchanges (CEXs) tumbled from $5.3 trillion in Q4 2024 to $4.6 trillion in Q1 2025, after which further slid to $3.6 trillion in Q2, as reported by the crypto analytics platform TokenInsight. This persistent decline in trading volume paints a stark picture against the backdrop of a seemingly resilient market.

The downturn within the spot market coincided with decreased altcoin trading activity and liquidity in Q2, which starkly contrasted with a more robust performance within the derivatives markets.

According to TokenInsight’s research team, “Traders stuck with high-frequency derivatives trading from Q1 as a strategy to hedge risks and exploit market volatility amid uncertainty.”

MEXC Shines Amid Spot Market Decline

Even as average day by day spot trading volume fell 23%, from $52 billion in Q1 to $40 billion in Q2, some exchanges managed to buck the trend. MEXC, a rising star amongst CEXs, marked the largest gain in spot trading volumes, with a 2.7% increase. Bitget also saw a modest rise of around 0.7% in spot trading.

TokenInsight anticipates that the present trajectory of declining spot trading volumes will persist. As the report notes, “Due to ongoing economic uncertainty, alongside limited liquidity and weak trading activity in the altcoin spot market, we expect Q3 2025 spot trading volume to remain subdued, hovering between $3 trillion and $3.5 trillion.”

Derivatives Markets Show Strength

While CEXs’ spot markets faltered, crypto derivatives displayed relative resilience. In Q2 2025, derivatives trading volumes amounted to $20.2 trillion, a slight 3.6% dip from $20.9 trillion in Q1. Despite this modest decline, the numbers reflect the continuing effects of the broader market corrections, as noted by TokenInsight.

TokenInsight observed that “While market sentiment briefly improved in early April due to the Federal Reserve’s pause on rate hikes, investors remained wary of a global economic slowdown and geopolitical tensions.”

Bitcoin ETFs Rise While CEX Volumes Fall

In contrast to the CEXs’ struggles in spot and derivative markets, crypto exchange-traded funds (ETFs) saw substantial growth in Q2. Major players like BlackRock reported a staggering 370% surge in inflows in comparison with the previous quarter.

BlackRock’s success is a component of a broader boom in global crypto exchange-traded products (ETPs), which attracted $17.8 billion in inflows throughout the first half of 2025. CoinShares data shows that almost $15 billion of this got here from BlackRock alone.

Thanks to those inflows and increased corporate adoption, Bitcoin’s price made a robust comeback in Q2, jumping 25%, as reported by CoinGecko. This rebound sharply contrasts with the 12% drop seen in Q1.

TokenInsight concluded, “Exchange tokens remain closely linked to the altcoin market, where trading activity and liquidity saw significant declines during the quarter, further eroding support for platform tokens.” Looking ahead, the report suggests that exchange token performance will proceed to diverge in Q3 2025.