The Coinbase Premium Index tracks the price difference between the Coinbase Pro price (USD pair) and the Binance price (USDT pair). Coinbase Pro typically represents whale and institutional movements, while Binance reflects more retail activity.
In many cases this year, we have seen the index turn positive when ETF inflows were high. However, it did not turn positive despite two consecutive days of high ETF inflows (October 11-13). The total net inflows were 253 and 556 million USD, respectively, on those days. This raises the question of whether investors on Binance, whether retailers, institutions, or whales, are surpassing the buying pressure on Coinbase Pro.
We definitely need more data to draw a conclusion, but it will be interesting to monitor this chart in relation to ETF trends. If ETF inflows remain positive and the index stays red, it may suggest that retailers are gaining strength.
Written by aytekin466