Identifying potential ETF wallet addresses as Coinbase leads BTC trading with $11.4 billion weekly
Coinbase Prime, the crypto platform designed specifically for institutional investors, trusts and high-net-worth individuals, has seen a dramatic increase in trading activity following the launch of US spot Bitcoin ETFs.
CryptoSlate Analysis identified a hot wallet in Coinbase Prime that rose to the top of the bitcoin flow chart last week. This wallet, used for trading activities on the platform, has seen modest inflows and outflows of hundreds of millions of dollars a month throughout 2023. However, last week saw an inflow of $5.7 billion and an outflow of an equivalent amount. . Historically, Binance‘s hot wallet has dominated the streaming rankings, and based on analyzed data, this is the first time in 7 days that Coinbase Prime has overtaken binance.
Highest entry into Bitcoin (Source: arkham Intelligence)
Over the past 30 days, Binance still leads the pack with around $14 billion in inflows and outflows, while Coinbase Prime lags slightly behind at around $12 billion. It is worth noting that other trading wallets are labeled as belonging to Coinbase Prime in Arkham Intelligence. However, it seems that this wallet can handle large transactions.
The increase in activity can be seen in the chart below, which only shows transactions over $10 million. Over $400 million was deposited in a single transaction in the last 4 days alone.
Big intros to Coinbase Prime (Source: Arkham Intelligence)
The image below shows the flow of transactions worth over $50 million for the Coinbase Prime hot wallet. The cluster on the left is labeled as Coinbase Prime deposit addresses, which all flow into the hot wallet. The cluster on the right contains wallets labeled as Coinbase Prime deposit addresses but showing inflows and outflows. Wallets in the subset are untagged and only show outputs from the hot wallet. The biggest outlier is the Coinbase exchange, which showed a single outflow of $78 million.
$50 Million Coinbase Prime Hot Wallet Visualization (Source: Arkham Intelligence)
Speculatively, the cluster on the left may represent deposit addresses of institutions, the wallets on the right may be trading wallets, and the wallets at the bottom may be cold storage. None of this can be confirmed at this time, but it could potentially be consistent with the data outlined in ETF prospectuses on how Bitcoin trading works for the funds. Note that the above only shows transactions greater than $50 million or around 1,100 BTC.
The chart below includes transactions as low as $1,000 with all the above wallets locked in place. Remarkably, while dozens of new wallets have entered the arena with these low valuations, there still does not appear to be any entry in the subset.
$1K Coinbase Prime Hot Wallet Visualization (Source: Arkham Intelligence)
Trying to identify and analyze wallets related to ETF activity can provide important insight into the Bitcoin market if transaction volumes continue to track launch data. Considering that CoinShares reported approximately $17.5 billion in trading volume across crypto financial products last week, this activity will impact the spot Bitcoin price differently.
The price at which ETFs value Bitcoin daily is calculated through the CF Benchmark Index (BRR), which stands for Bitcoin Reference Rate. This rate is calculated daily between 15:00 and 16:00 GMT by analyzing various transactions on various exchanges. BRR is then used to calculate the funds’ net asset value and therefore the value of the Bitcoin it owns. This rate and the fact that stake creation and redemption occur outside of standard trading hours adds a new dynamic to Bitcoin trading that has not been a factor until now.
#Identifying #potential #ETF #wallet #addresses #Coinbase #leads #BTC #trading #billion #weekly
Coinbase Prime, the crypto platform designed specifically for institutional investors, trusts and high-net-worth individuals, has seen a dramatic increase in trading activity following the launch of US spot Bitcoin ETFs.
CryptoSlate Analysis identified a hot wallet in Coinbase Prime that rose to the top of the bitcoin flow chart last week. This wallet, used for trading activities on the platform, has seen modest inflows and outflows of hundreds of millions of dollars a month throughout 2023. However, last week saw an inflow of $5.7 billion and an outflow of an equivalent amount. . Historically, Binance‘s hot wallet has dominated the streaming rankings, and based on analyzed data, this is the first time in 7 days that Coinbase Prime has overtaken binance.
Highest entry into Bitcoin (Source: arkham Intelligence)
Over the past 30 days, Binance still leads the pack with around $14 billion in inflows and outflows, while Coinbase Prime lags slightly behind at around $12 billion. It is worth noting that other trading wallets are labeled as belonging to Coinbase Prime in Arkham Intelligence. However, it seems that this wallet can handle large transactions.
The increase in activity can be seen in the chart below, which only shows transactions over $10 million. Over $400 million was deposited in a single transaction in the last 4 days alone.
Big intros to Coinbase Prime (Source: Arkham Intelligence)
The image below shows the flow of transactions worth over $50 million for the Coinbase Prime hot wallet. The cluster on the left is labeled as Coinbase Prime deposit addresses, which all flow into the hot wallet. The cluster on the right contains wallets labeled as Coinbase Prime deposit addresses but showing inflows and outflows. Wallets in the subset are untagged and only show outputs from the hot wallet. The biggest outlier is the Coinbase exchange, which showed a single outflow of $78 million.
$50 Million Coinbase Prime Hot Wallet Visualization (Source: Arkham Intelligence)
Speculatively, the cluster on the left may represent deposit addresses of institutions, the wallets on the right may be trading wallets, and the wallets at the bottom may be cold storage. None of this can be confirmed at this time, but it could potentially be consistent with the data outlined in ETF prospectuses on how Bitcoin trading works for the funds. Note that the above only shows transactions greater than $50 million or around 1,100 BTC.
The chart below includes transactions as low as $1,000 with all the above wallets locked in place. Remarkably, while dozens of new wallets have entered the arena with these low valuations, there still does not appear to be any entry in the subset.
$1K Coinbase Prime Hot Wallet Visualization (Source: Arkham Intelligence)
Trying to identify and analyze wallets related to ETF activity can provide important insight into the Bitcoin market if transaction volumes continue to track launch data. Considering that CoinShares reported approximately $17.5 billion in trading volume across crypto financial products last week, this activity will impact the spot Bitcoin price differently.
The price at which ETFs value Bitcoin daily is calculated through the CF Benchmark Index (BRR), which stands for Bitcoin Reference Rate. This rate is calculated daily between 15:00 and 16:00 GMT by analyzing various transactions on various exchanges. BRR is then used to calculate the funds’ net asset value and therefore the value of the Bitcoin it owns. This rate and the fact that stake creation and redemption occur outside of standard trading hours adds a new dynamic to Bitcoin trading that has not been a factor until now.
#Identifying #potential #ETF #wallet #addresses #Coinbase #leads #BTC #trading #billion #weekly