Coinbase to Binance
The crypto market is currently experiencing shifts in institutional interest and holdings, with a particular focus on the potential approval of a spot bitcoin ETF and its wider implications for traditional markets and decentralised finance.
US institutions are entering the crypto market. Coinbase’s bitcoin holdings have increased by approximately 12,000 BTC, while Binance’s holdings have decreased by 5,000 BTC. The increase in BTC trading volume on Coinbase is notable despite recent events such as Binance’s decision to pay a $4.3 billion fine. Looking at the bitcoin holdings of the Binance and Coinbase exchanges, there appears to be a significant change, albeit not a large one.
Coinbase is attracting interest from institutional investors, linked to the pending approval of a spot bitcoin ETF. While the Binance exchange may be an intimidating choice for traditional financial institutional investors, Coinbase is perceived as more stable from a regulatory perspective. As a result, many institutional investors use Coinbase, with the majority of trading volume coming from institutional investors.
“It’s important to understand what institutional investors are doing because a lot of the money coming into this market is coming from these institutions.”
$9.9 Billion of New Money Could Flow into Crypto Market
In this situation, it’s important to keep an eye on what institutional investors are doing to enter this market.
“The approval of a spot bitcoin ETF is expected to add $70 billion to the current $7 trillion US ETF market,” Glassnode said. Glassnode also predicted that $60.6 billion and $9.9 billion of new money could flow into the ETF market from the equity and gold markets respectively.
Glassnode also noted that the number of long-term BTC holders is now increasing. In the case of gold, the introduction of spot ETFs in 2004 led to a surge in prices. BTC is expected to follow a similar trend.
“The impact of the first spot bitcoin ETF will be more than symbolic,” Glasnod said.
The approval of a spot bitcoin ETF will open up more options for clients investing in traditional markets, and is also expected to contribute to positive price action for DeFi assets.
This influx of new capital could have a significant impact on the bitcoin market. As bitcoin becomes more widely accepted and integrated into traditional investment portfolios, there is potential for its price to rise.
According to CoinMarketCap, BTC is trading at $37,736, up 0.60% from the previous day.
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