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CDS Crypto News Coinbase: US Bitcoin ETFs Constitute Up to 15% of BTC Spot Trading

Crypto News

Coinbase: US Bitcoin ETFs Constitute Up to 15% of BTC Spot Trading

According to analysts at Coinbase, the strength of Ether stands as one of the three primary focal points in the current crypto landscape, alongside the growth of decentralized finance (DeFi) and the mounting selling pressure experienced by Bitcoin miners.

Ecem EFE09/02/20241 Mins read103

Coinbase US Bitcoin ETFs Constitute Up to 15% of BTC Spot Trading

Crypto News- In a recent report titled “Monthly Outlook: Post-ETF Trading Themes,” Coinbase analysts David Duong and David Han caution against fixating on spot Bitcoin exchange-traded funds (ETFs) in the short term, suggesting they might divert attention from more significant developments in the crypto landscape.

Despite a notable $1.46 billion inflow into spot Bitcoin ETFs in January, the analysts deem the short-term impact on performance to be overestimated. They highlight that these ETFs currently represent only 10-15% of the total Bitcoin spot trading volume across centralized exchanges globally. Additionally, these ETFs hold approximately 650,000 BTC, equivalent to 3% of the outstanding Bitcoin supply.

Coinbase: US Bitcoin ETFs Constitute Up to 15% of BTC Spot Trading

Recent data from CoinMarketCap indicates that Bitcoin’s spot trading volume reached $29.5 billion over the past 24 hours. On Feb. 8 alone, 10 spot Bitcoin ETFs traded roughly $1.3 billion, comprising around 4.4% of Bitcoin traded on centralized exchanges during the same period.

The report underscores the emergence of more significant crypto trends post-ETF launches, such as the burgeoning decentralized finance (DeFi) sector. With 58% of the total DeFi value locked on the Ethereum blockchain, the analysts emphasize the strength of Ether (ETH) alongside DeFi growth and selling pressure on Bitcoin miners leading up to the halving.

The impending Bitcoin halving in April may tighten mining margins, potentially increasing sell pressure on miners. However, the immediate impact of miner selling remains uncertain.

In recent years, DeFi activity experienced a downturn after peaking above $200 billion in October 2021. However, there has been a resurgence in 2024, with the total value locked (TVL) rising from $55 billion on Jan. 1 to $65 billion at present.

Moreover, ETH has witnessed substantial growth year-to-date, climbing from $2,350 on Jan. 1 to $2,510 at the time of writing. Ethereum community member Ryan Berckmans believes that Ethereum’s transition to a proof-of-stake consensus mechanism could propel its price to $27,000 during the current bull cycle.