FTX US Says Daily Trading Volume Jumped 500% Last Quarter
FTX US Says Daily Trading Volume Jumped 500% Last Quarter
(Bloomberg) -- Crypto exchange FTX US released third-quarter operational and trading results that showed the privately-held firm gaining market share in the competitive world of digital-asset exchanges.
The company -- the U.S. arm of crypto exchange FTX -- said it held roughly 4.5% of U.S. crypto spot-market volume at the end of the quarter, up from 2% at the start of that period, according to a press release. Average daily volume grew more than 500% during the stretch, with peak 24-hour volume of around $807 million seen at the start of September. User count grew by more than 50%, and headcount increased by 30%.
“As crypto prices go up, we see more retail involvement in trading crypto,” FTX US President Brett Harrison said by phone. Still, more than 60% of the volume on FTX US comes from institutions, such as proprietary trading firms and hedge funds, whose volumes tend to be less sensitive to crypto prices. “They’re willing to make markets whether crypto is going up or down.”
FTX US’s results came during a period when crypto prices began to recover from a tumultuous second quarter that saw price records followed by a steep pullback. Bitcoin rose about 25% in the July-to-September period, while Ether advanced 33%. And the company’s trend contrasts with figures from Coinbase Global Inc., the largest crypto exchange in the U.S., which this week reported worse-than-forecast results.
FTX US is benefiting from a marketing strategy, mainly from affiliate FTX, that’s seen major outlays on high-profile sports sponsorships, Harrison said. FTX sponsors Major League Baseball, bought naming rights to the arena where the Miami Heat basketball team plays, and entered a long-term partnership with celebrity couple Tom Brady and Gisele Bündchen. It also purchased an ad in the upcoming Super Bowl, one of the most high-profile -- and expensive -- opportunities for publicity in sports broadcasting.
Meantime, FTX US closed its acquisition of Ledger Holdings Inc. in the fourth quarter, according to the press release. The parent-company of LedgerX, a digital-currency futures and options exchange and clearinghouse, has since been rebranded as FTX US Derivatives.
©2021 Bloomberg L.P.