Digital asset liquidity is increasingly concentrating in spot markets backed by institutional custody solutions. Recent market data shows a marked reduction in off-exchange spreads alongside higher average block trade volumes, signaling a maturing market microstructure.
Market Microstructure and Settlement Dynamics
The entry of traditional prime brokers has compressed bid-ask spreads for top-tier digital assets by nearly 18 basis points over the past two quarters. Consequently, retail-driven derivatives markets are yielding market share to cleared, regulated instruments that offer clearer capital efficiency for institutional balances.