Bitcoin (BTC): how weekend liquidity has changed since ETF approval this year

Explore how Bitcoin’s weekend liquidity dynamics evolved after the 2025 ETF approval, what it means for retail investors, and how RWA platforms like Eden RWA fit into the picture.

• Bitcoin’s weekend trading volume surged post-ETF approval.
• Liquidity gaps narrowed, but volatility remains higher on Saturdays & Sundays.
• Retail investors should monitor market maker activity and regulatory updates to navigate new dynamics.

In 2025, the U.S. Securities and Exchange Commission (SEC) finally approved a spot Bitcoin exchange‑traded fund (ETF), a milestone that reshaped how institutional capital flows into the cryptocurrency ecosystem. The approval came amid growing calls for regulated access to Bitcoin, and it triggered immediate shifts in market structure—most notably in weekend liquidity.

Weekend liquidity refers to the ease with which traders can buy or sell assets when traditional markets are closed. Historically, Bitcoin’s 24/7 nature meant that volume remained relatively steady across weekdays and weekends. However, institutional participation has traditionally been skewed toward business days due to alignment with fiat market hours and regulatory reporting cycles.

For intermediate retail investors, understanding these shifts is crucial. Weekend liquidity changes affect order execution quality, slippage, and the overall cost of trading Bitcoin. This article examines why weekend liquidity matters now, how it has evolved since the ETF approval, and what practical steps you can take to adapt your strategy.

Background & Context

The SEC’s 2025 decision to list a spot Bitcoin ETF marked the first time an actively traded token received formal regulatory endorsement in the United States. This move legitimized Bitcoin as an investment vehicle for institutional money managers, pension funds, and insurance companies that had previously avoided it due to legal uncertainty.

With greater regulatory clarity came increased capital flow. Market makers—entities that provide liquidity by quoting buy and sell prices—began allocating more resources to the ETF’s underlying spot market. Their presence is a key driver of price stability and depth, especially during off‑hours when other participants are less active.

As institutional traders adjusted their operating models to align with U.S. market hours, they introduced new patterns in order flow. Overnight positions were hedged more aggressively, and some firms opted for daily rebalancing that left Saturday and Sunday markets exposed. The result: a measurable shift in how liquidity behaves over the weekend.

How It Works

The ETF approval created a structured channel for institutional money to enter Bitcoin markets. Here’s a simplified view of the mechanics:

• ETF Creation & Redemption: Authorized participants (APs) can create or redeem ETF shares by delivering or receiving Bitcoin at the fund’s net asset value (NAV). This process anchors the ETF price to the underlying spot market.
• Market Maker Activation: APs and other liquidity providers increase bid‑ask spreads, ensuring tighter pricing during off‑hours. Their activity often lags behind real‑time market movements, creating temporary gaps.
• Night‑Time Hedging: Institutional funds hedge overnight positions in derivatives or futures to mitigate price swings. This hedging reduces volatility but can also dampen liquidity if executed too aggressively.

The net effect is that weekend trades now encounter a more robust order book than before, but the depth still lags behind weekdays due to lower overall participation and regulatory reporting constraints.

Market Impact & Use Cases

Since the ETF approval, on‑weekend trading volume has increased by roughly 30% compared with pre‑ETF levels. However, the quality of liquidity—measured by bid‑ask spreads and slippage—varies across exchanges. Here’s a snapshot:

These improvements are most pronounced on exchanges that actively integrate ETF market data and support overnight liquidity provisioning. For example, major custodial platforms now offer “overnight” order types that automatically adjust to the evolving spread.

Beyond price dynamics, institutional involvement has spurred new use cases:

• Asset‑Backed Tokenization: Funds can package Bitcoin holdings into tokenized securities, enabling fractional ownership for retail investors.
• DeFi Integration: Protocols that accept Bitcoin as collateral now benefit from tighter pricing, reducing borrowing costs.
• RWA Synergy: Platforms like Eden RWA can pair Bitcoin liquidity with real‑world assets, creating hybrid investment vehicles that appeal to both crypto and traditional investors.

Risks, Regulation & Challenges

While weekend liquidity has improved, several risks persist:

• Regulatory Uncertainty: The SEC’s stance on ETF redemption limits could change, affecting market maker behavior and liquidity provision.
• Smart Contract Vulnerabilities: Many exchanges rely on automated order routing; bugs or exploits can temporarily freeze liquidity during off‑hours.
• Liquidity Concentration: Heavy reliance on a few large market makers means that a single failure could widen spreads overnight.
• KYC/AML Compliance: Institutional traders must adhere to strict identity verification, which may delay order execution if documentation is incomplete.

A hypothetical scenario: If the SEC imposes tighter redemption thresholds mid‑2025, market makers might pull back from weekend orders, widening spreads and increasing slippage. Retail investors would then face higher transaction costs during periods of lower activity.

Outlook & Scenarios for 2025+

Bullish scenario: Continued regulatory clarity attracts more institutional capital, leading to sustained liquidity improvements and tighter bid‑ask spreads even on weekends. This environment would reduce execution costs for retail traders and foster broader adoption of Bitcoin as a stable store of value.

Bearish scenario: Regulatory backlash—such as a halt to ETF redemptions or increased oversight on market makers—could erode liquidity overnight, causing wider spreads and higher volatility. Retail investors would need to adopt more conservative order strategies.

Base case: Over the next 12–24 months, we anticipate gradual tightening of spreads and a modest increase in weekend trading volume. Institutional participation will remain significant but may plateau as market makers adjust their risk models to reflect new regulatory constraints. Retail investors should monitor ETF NAV movements and exchange liquidity metrics closely.

Eden RWA: A Concrete Real‑World Asset Example

While Bitcoin’s liquidity is evolving, platforms like Eden RWA demonstrate how real‑world assets can be tokenized and integrated into the crypto ecosystem. Eden democratizes access to French Caribbean luxury real estate—properties in Saint‑Barthélemy, Saint‑Martin, Guadeloupe, and Martinique—by issuing ERC‑20 property tokens backed by SPVs (SCI/SAS). Investors receive rental income in USDC directly to their Ethereum wallet, with smart contracts automating payouts and ensuring transparency.

Key features of Eden RWA:

• Fractional Ownership: Each token represents a share in a specific villa, allowing small‑cap investors to participate in high‑end real estate markets.
• DAO‑Light Governance: Token holders vote on renovation and sale decisions, aligning incentives while maintaining operational efficiency.
• Experiential Layer: Quarterly draws give token holders a chance to stay in a villa for free, adding tangible value beyond passive income.
• Planned Secondary Market: A compliant secondary marketplace is under development, potentially enhancing liquidity for RWA tokens.

If you’re interested in exploring how Bitcoin’s improved weekend liquidity can complement tokenized real‑world assets, consider learning more about Eden RWA’s presale. Visit the following links to view detailed information and participate:

Eden RWA Presale Information | Join the Presale Now

Practical Takeaways

• Watch ETF NAV volatility as a proxy for liquidity health.
• Monitor bid‑ask spreads on major exchanges during weekend hours.
• Consider using limit orders to mitigate slippage when trading off‑hours.
• Stay informed about SEC updates that could affect market maker participation.
• Explore complementary RWA platforms to diversify exposure beyond Bitcoin.
• Verify smart contract audits for any exchange or protocol you use.
• Set realistic expectations for order execution times during low‑volume periods.

Mini FAQ

What is a Bitcoin ETF and how does it affect liquidity?

A Bitcoin ETF allows investors to gain exposure to the asset through regulated securities. Its approval increases institutional flow, which in turn attracts market makers that provide tighter pricing and deeper order books.

Why do weekend spreads widen even after ETF approval?

Weekend markets still have fewer participants, especially those tied to traditional fiat operations. Market makers may reduce activity off‑hours due to regulatory reporting constraints or risk management policies.

Can I trade Bitcoin on weekends with the same efficiency as weekdays?

You can, but you should anticipate slightly higher slippage and wider spreads compared to business days. Using limit orders and monitoring liquidity metrics helps manage these differences.

Conclusion

The 2025 approval of a spot Bitcoin ETF has reshaped the liquidity landscape, bringing more institutional capital into the market and tightening bid‑ask spreads even over weekends. While the improvements are tangible, weekend volatility remains higher than during weekdays, and regulatory developments can still alter the dynamics.

For intermediate retail investors, the key is to stay informed about ETF NAV movements, monitor exchange liquidity metrics, and consider complementary investment vehicles like tokenized real‑world assets. By understanding how liquidity evolves after regulatory milestones, you position yourself to make more nuanced trading decisions in a rapidly maturing market.

Disclaimer

This article is for informational purposes only and does not constitute investment, legal, or tax advice. Always do your own research before making financial decisions.