Xapo Bank Reports 14.2% Increase in Bitcoin Trading Volume for Q1 2025

TLDR

• Xapo Bank reported 14.2% growth in Bitcoin trading volume in Q1 2025 compared to Q4 2024
• High-net-worth clients “bought the dip” during Bitcoin’s 13% price decline
• Euro deposits jumped 50% quarter-on-quarter amid concerns about US dollar stability
• USDC deposits increased 19.8% while Tether (USDT) deposits fell 13.4%
• Bitget exchange saw spot trading volume increase 159% to $387 billion in Q1 2025

Gibraltar-based Xapo Bank has reported a 14.2% increase in Bitcoin trading volume during the first quarter of 2025 compared to the previous quarter. This growth occurred despite Bitcoin experiencing its worst start to a year since 2018, closing Q1 down 13%.

According to Xapo Bank, its high-net-worth clients actively “bought the dip” during the market downturn. This purchasing pattern reflects what the bank describes as members’ commitment to Bitcoin’s long-term potential rather than focusing on short-term price volatility.

Xapo Bank became the first licensed bank to launch interest-bearing Bitcoin and fiat banking accounts in the UK earlier this year. The institution also introduced Bitcoin-backed USD loans of up to $1 million in March 2025, expanding its crypto-friendly service offerings.

Shifting Deposit Patterns

The first quarter also saw a 50% jump in euro deposits at Xapo Bank compared to the previous quarter. The bank attributes this rapid increase to mounting concerns about US dollar stability and recession fears as markets prepared for former President Trump’s planned “Liberation Day” in April.

Stablecoin deposit patterns showed clear shifts during this period. USDC deposits increased by 19.8% in Q1 compared to Q4 2024. In contrast, Tether (USDT) deposits decreased by 13.4% during the same timeframe.

This change in stablecoin preferences comes as European cryptocurrency exchanges have begun delisting Tether to comply with Markets in Crypto-Assets Regulation (MiCAR). Tether also withdrew its euro-backed stablecoin from the market during this period.

Xapo Bank is positioning itself to fill a market gap, noting that fewer than 20% of European banks currently provide crypto services. Their approach combines cryptocurrency options within a traditional banking environment.

Industry-Wide Trading Growth

The increase in trading activity was not limited to Xapo Bank. Cryptocurrency exchange Bitget also reported surging volumes in its Q1 2025 Transparency Report.

Bitget’s total trading volume reached $2.1 trillion in the first quarter. Spot trading volume saw a dramatic increase of 159% quarter-on-quarter, rising to $387 billion.

The exchange added 4.89 million users to its centralized platform and 15 million users to its Bitget Wallet app during Q1. This growth brings Bitget’s total global user count to over 120 million.

In February, Bitget demonstrated industry cooperation by loaning rival exchange Bybit 40,000 ETH, valued at approximately $100 million. This loan, provided without interest or collateral, helped Bybit recover from a major hack.

The loan has since been fully repaid, with Bitget CEO Gracy Chen stating it was “simply about supporting a peer in need.”

Gadi Chait, Xapo Bank’s head of investment, emphasized that short-term market turbulence doesn’t diminish Bitcoin’s importance. He stated that “while global events painted an erratic picture, the opportunity for Bitcoin has always been in its long-term performance, not its short-term volatility.”

Xapo Bank’s self-conducted poll on X showed that respondents primarily favor using Bitcoin for savings and investment purposes, further supporting the bank’s focus on Bitcoin as a long-term asset.

If you could spend Bitcoin anywhere, what would be your first purchase? 🤔

— Xapo Bank (@xapobankapp) March 11, 2025

Bitget’s CEO indicated the exchange will continue focusing on institutional-grade infrastructure while expanding its Web3 presence through its ecosystem of products.

Despite market volatility and regulatory changes affecting certain cryptocurrencies, the data from both Xapo Bank and Bitget suggests continued strong interest in crypto trading and investment, particularly among clients viewing Bitcoin as a long-term store of value rather than a short-term trading vehicle.