The entry of institutional capital via regulated spot exchange-traded funds has altered market microstructure across primary digital asset exchanges. Order book depth has concentrated predominantly within top-tier market cap assets, shifting price discovery from retail venues to regulated OTC desks.
Market Microstructure Impact
Spreads for major trading pairs have narrowed by an average of 14% year-over-year. However, secondary layer protocols and alternative tokens face reduced liquidity availability as capital remains anchored in primary assets.