The Coinbase Premium Gap is a useful tool to visualize institutional involvement in the market wich shouldn’t be linked to ETF flows.
By comparing the BTC price on Coinbase Pro and Binance, we can distinguish the behavior of different types of market participants.
— Coinbase Pro is specifically designed for advanced traders and institutional investors. It offers lower fees, deeper liquidity, and more sophisticated order types compared to the standard Coinbase interface.—
When smoothing the premium with a monthly average, we can observe that the gap has never been this wide, recently reaching + $78 wich means that a positive pressure come from institutionals.
If we compare that to ETF inflows, we’ll notice they are not always correlated, and it’s important to keep in mind that ETFs are open to all types of investors, which may explain the difference.
That said, we did notice that ETF inflows were perfectly synchronized recently, with the monthly average staying close to $1 billion between June 16 and June 27.
So overall, there is clearly strong demand coming from the US side (institutional investors and whales)
along with ETFs (this demand is not reflected on the spot markets.)
Written by Darkfost
