According to findings by cryptocurrency research firm Kaiko, the percentage of Bitcoin trading occurring on weekends has reached an unprecedented low of 16% this year. This significant decrease can be attributed to the introduction of spot Bitcoin Exchange-Traded Funds (ETFs), which have aligned Bitcoin trading hours more closely with traditional stock exchanges and contributed to a reduction in Bitcoin's price volatility.

One distinct aspect of cryptocurrencies, unlike stocks, is their accessibility for trading round the clock, including on weekends. Historically, Bitcoin trading has been associated with 'Wild Weekends,' characterized by substantial price fluctuations. However, this trend seems to be subsiding as the volume of Bitcoin traded over weekends continues to dwindle from its peak of 28% in 2019. The onset of Bitcoin ETFs is presumed to be a key driver behind this shift.

Bitcoin ETFs were introduced in early 2024 with approval from the U.S. Securities and Exchange Commission, capturing the attention of investors and propelling Bitcoin's price to an all-time high in March. Despite some retracement, the primary cryptocurrency has still surged by nearly 45% this year, settling around $61,000.

Unlike most digital currencies that can be traded at any time on platforms such as Binance, Bitcoin ETFs adhere to the trading schedules of the conventional stock exchanges on which they operate, restricting weekend trading activities. Kaiko highlighted that the proportion of Bitcoin traded between 15:00 and 16:00 on weekdays surged from 4.5% to 6.7% in the fourth quarter of 2023. This interval, known as the benchmark pegging window, is when ETF holders determine the Bitcoin price to calculate the ETF's net asset value.

The closure of crypto-friendly banks Silicon Valley Bank and Signature Bank in March 2023 has further contributed to the weekend transaction volume decline, as stated by Kaiko. This is due to market makers losing the ability to utilize banks' 24/7 payment networks for instantaneous crypto transactions. The report by Kaiko suggested that the disparity between weekday and weekend trading is likely to persist, as market makers, reliant on high trade volumes for revenue, have diminished incentives to offer liquidity in low-volume settings.

Institutional acceptance of cryptocurrencies via Bitcoin ETFs has significantly curbed price volatility, as per another Kaiko report. Following Bitcoin's previous record peaks in November 2021, volatility soared to nearly 106%. However, after Bitcoin reached a record high of $73,798 in March on the backdrop of ETF optimism, volatility plummeted to 40%.

Kaiko indicated that the consistent trend of reduced volatility, remaining below 50% since the start of 2023, signals Bitcoin's evolution into a more mature asset. The report cautioned against prematurely labelling this as the new norm but suggested that alterations in Bitcoin's market structure over the past year could elucidate the relative calmness in price movements.