Coinbase's Massive $7 Billion Bitcoin Sale Raises Concerns Amid ETF Surge
The exchange's massive OTC transaction sparks market concerns amid ETF trading debut.
Bitcoin's -6.55% one-day drop prompts questions about Coinbase's Bitcoin reserves and potential market impact.
With Coinbase as custodian for 8 of 11 major ETFs, its actions may reverberate throughout the market.
In a surprising turn of events, Coinbase, the leading cryptocurrency exchange, reportedly executed a staggering $7 billion worth of Bitcoin (BTC) sales through over-the-counter (OTC) channels on the first day of Exchange-Traded Fund (ETF) trading. Since Coinbase is one of the 8 custodians out of 11 major ETFs, its move has sparked discussions about the exchange’s Bitcoin reserves.
In a recent tweet, crypto analyst Lark Davis reveals Coinbase's staggering $7B Bitcoin sale on ETF trading's first day. Custodian concerns arise:
On the other side of the spectrum, blockchain data analyst Ki Young Ju sheds light on the significant outflows from Grayscale wallets. It had sent 21.4k $BTC to various addresses, including Coinbase, in the previous 30 days. The sell-off, coinciding with a -6.55% dip in Bitcoin's value to 43k level, has ignited discussions about Coinbase's ability to sustain such high trading volumes. With Bitcoin's market cap also experiencing a -6.44% decline to $845,139,262,305, investors are closely monitoring the potential impact on the cryptocurrency giant's reserves and market dynamics.
