LMAX Digital volumes were unsurprisingly light on Monday given the US holiday. Total notional volume for Monday came in at $462 million, 43% below 30-day average volume.

Bitcoin volume printed $346 million on Monday, 44% below 30-day average volume. Ether volume came in at $63 million, 46% below 30-day average volume.

Looking at average position size over the past 30 days, we’re seeing average bitcoin position size at $15,974 and average position size for ether at $4,044.

Volatility is tracking just off multi-month highs set in the previous week. We’re looking at average daily ranges in bitcoin and ether of $2,027 and $119 respectively.

As per our Monday commentary, we’ve entered a phase of corrective price action in the aftermath of the SEC bitcoin spot ETF approvals.

At the moment, we’re in between the phase of the pricing in of the event from insiders within the crypto community and the phase of the arrival of the new investment from traditional players.

Now that the ETFs have been launched, it will take some time for these products to fully penetrate mainstream markets. We suspect it won’t take a lot of time, though it could mean we don’t see that pickup from these players until Q2 2024.

Technically speaking, any dips in the price of bitcoin should be quite shallow this year. And at the moment, despite the recent setbacks, the outlook remains highly constructive while above $40k, with the market seen consolidating above the figure ahead of the next big push through $50k.

Both Deutsche Bank and JP Morgan have recently issued notes highlighting their expectations for a significant amount of capital to pour into the new spot ETF products.

And now that the banks have more of a reason to push crypto as an asset class, we can expect these players to bulk up staffs to further accommodate the space, a clear positive for the overall outlook.