Bitcoin Reserves on Binance Decreasing as Outflow Shifts to Coinbase
Data from blockchain analytics firm CryptoQuant reveals that the Bitcoin reserves on Binance, the world’s largest cryptocurrency exchange, are depleting rapidly. In contrast, Coinbase Pro, a premium digital asset platform based in the US, has seen an increase in its Bitcoin reserves.
CryptoQuant points out that Coinbase Pro has received 12,000 Bitcoins while Binance’s reserves have decreased by 5,000 BTC. However, despite this shift, spot Bitcoin trades on Binance still exceed those on Coinbase by six times.
Some speculate that the recent $4.3 billion fine imposed on Binance could be contributing to the outflows to Coinbase. However, CryptoQuant suggests that this is more closely related to the ongoing discourse surrounding the approval of a Bitcoin spot exchange-traded fund (ETF).
Bitcoin Spot ETF Approval Expected Soon
In recent months, multiple asset management firms have applied for a Bitcoin spot ETF with the US Securities and Exchange Commission (SEC). These firms include BlackRock, Valkyrie, Grayscale, Fidelity, WisdomTree, and others. Coinbase serves as a key custodian for these ETFs.
CryptoQuant states that the outflows from Binance to Coinbase are natural considering Coinbase’s expected role in facilitating Bitcoin spot ETFs for large asset management firms. The preferred trading firm for many institutional players in the US and worldwide is Coinbase.
Increased Likelihood of Approval
Bloomberg’s ETF analyst James Seyffart predicts an increased likelihood of approval for a Bitcoin spot ETF in January 2024. He estimates the chances of approval at 90%. The SEC has expressed concerns about market manipulation and accurate tracking of asset prices.
Impact of Binance’s Legal Issues
Following Binance’s enforcement action and resolution of its legal issues, a crypto trader on X believes that the chances of Bitcoin spot ETF approval are even higher. The trader suggests that the market will view this resolution as bullish.
Hot Take: CryptoQuant Reports Decline in Binance’s Bitcoin Reserves as Retail Flow Shifts to Coinbase
The Bitcoin reserves on Binance, the world’s largest cryptocurrency exchange, are depleting rapidly, according to data from blockchain analytics firm CryptoQuant. Meanwhile, Coinbase Pro, a premium digital asset platform based in the US, is seeing an increase in its Bitcoin reserves. This shift in reserves is likely due to the ongoing discourse surrounding the approval of a Bitcoin spot exchange-traded fund (ETF). Multiple asset management firms have applied for a Bitcoin spot ETF with the US Securities and Exchange Commission (SEC), and Coinbase plays a key role as a custodian for these ETFs. As the approval of a Bitcoin spot ETF becomes more likely, outflows from Binance to Coinbase are expected to continue.
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