Crypto Dark Pools Quietly Grab 15% of Monthly Volume

The way people buy and sell cryptocurrencies is undergoing significant changes. According to sFOX, institutional dark pools have quietly taken control of 15% of monthly crypto volume in just a few months.

This means that large buyers and sellers are now using private networks to execute trades, making it harder for retail investors to see what's happening in the market.

sFOX's Diana Pires explained that this shift is similar to what happened in equities and foreign exchange markets years ago. She noted that institutions like Jane Street and Citadel use dark pools to remain 'unreadable' and avoid having their trades front-run by other investors.

The result of this change is a less transparent market, where retail investors have fewer clues about the direction of large trades. This may lead to fewer opportunities for whale-watching and volatility trading, as well as tighter spreads and better execution routes.