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Coinbase Bitcoin Reserves Plummet 15% Since February Amid Spot ETF Demand Surge


Coinbase’s Bitcoin reserves have dropped by 15% since February, largely due to increased demand from spot BTC ETFs, according to a new report by CryptoQuant analyst Burakkesmeci.

Why It Matters

The decline in Coinbase’s BTC reserves indicates a shift in investor behavior, with more users either selling their assets or moving their bitcoins to personal wallets for long-term storage. This trend is closely linked to the growing popularity of spot BTC ETFs, which have seen a surge in demand since becoming tradable in January.

By the Numbers

  • Cumulative spot BTC volume held by ETF issuers: $296.32 billion
  • BlackRock (IBIT) holds the highest assets under management (AuM) at $20.49 billion
  • Net outflows from the spot BTC ETF market on June 14: $190.08 million
  • Fidelity’s FBTC recorded the largest outflows on June 14, at $80 million
  • Grayscale’s GBTC saw outflows totaling $52 million on the same day

What’s Next

The spot BTC ETF market has recorded outflows on four out of five days since June 10, largely due to Bitcoin’s weak performance over the last 7 days. With BTC currently facing significant resistance at the $70,000-price level, investors will be closely monitoring market trends and regulatory developments to inform their investment strategies.

The Big Picture

The decline in Coinbase’s Bitcoin reserves and the simultaneous growth of spot BTC ETFs highlight a broader shift in the cryptocurrency market. As more institutional investors enter the space and new investment vehicles become available, the dynamics of Bitcoin ownership and storage are evolving. This trend could have significant implications for the future of the crypto market, including increased mainstream adoption and potential regulatory changes.

What do you think about the impact of spot BTC ETFs on the broader cryptocurrency market? Leave a comment below with your insights.

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