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Coinbase Sees $500M in Bitcoin Outflows as Spot ETFs Rise
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Coinbase sees huge Bitcoin outflows as investors flock to locate ETFs
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Coinbase, one of the largest cryptocurrency exchanges globally, has witnessed significant outflows of Bitcoin (BTC) totaling almost 500 million dollars in the last 48 hours. This development comes as Bitcoin Exchange Traded Funds (ETFs) have seen a surge in activity and dominance, particularly in the US market.
According to CryptoQuant data, recent BTC movements on Coinbase are notable in terms of volume and timing. On June 4, around 3:00 am, Coinbase recorded a net outflow of 3,067 BTC and just 14 hours later, at 5:00 pm, another 3,734 BTC exited the exchange. These outflows, combined, are equivalent to approximately $500 million, considering those of Bitcoin exchange price at that time.
Link to ETF
This massive outflow from Coinbase is closely tied to the growing interest in spot Bitcoin ETFs. These financial instruments, which allow investors to buy and sell shares representing BTC without directly holding the cryptocurrency, are gaining traction. Spot ETFs are seen as a gateway for institutional investors to gain exposure to Bitcoin, and their growing popularity is driving significant capital inflows into the BTC market.
Recent data underlines this trend. On June 4th there was an influx of $886.6 million in spot Bitcoin ETFs. This influx indicates strong demand for BTC among institutional players, many of whom use exchanges like Coinbase to acquire needed assets. While Fidelity is an exception, as it chooses to purchase Bitcoin through other means, most other institutions are funneling their investments through major exchanges, contributing to the outflows seen by Coinbase.
Market dynamics and implications
The widest market dynamics reflect a complex interaction between spot exchanges and ETFs. A net inflow of 4,594 BTC was recorded in spot trades on June 5, suggesting short-term selling pressure. However, interpreting these movements in isolation can be misleading, especially in the current ETF-driven market environment.
The Coinbase Premium Index, which measures the price difference between Coinbase and other exchanges, remains in positive territory on both an hourly and daily scale. This premium indicates strong buying pressure from US-based investors, further supporting the idea that the ETF market is driving the current bullish trends.
About the author
Mushumir’s ass
With over three years of immersive experience in the cryptocurrency industry, Mushumir is an expert cryptocurrency writer dedicated to unraveling the intricacies of blockchain technology and decentralized finance. From analyzing the latest blockchain innovations to demystifying trading strategies, he brings a unique blend of technical intuition and communication style to the crypto space. Having written countless articles, analyzes and market reports, Mushumir has developed a distinctive voice that resonates with both seasoned investors and newcomers to the world of cryptocurrencies.