CandleFocus

Coinbase Premium Index Negative Amid High ETF Inflows

Author: Content Editor
The Coinbase Premium Index was negative on October 11-13, 2024, leading to speculation about the sentiment in the market. Despite heavy ETF flows, the index did not reflect the same positivity, leading to interpretations of increased retailer interest. The index measures the difference between Coinbase Pro and Binance prices, with the former being influenced by whales and institutions and the latter primarily by retail movements. The net flows on those dates were $252 million and $556 million, respectively. More data is needed for a concrete conclusion, but it suggests that retailers may be gaining strength. Meanwhile, Coinbase is in a court battle with the SEC regarding the classification of ETH as a security. Coinbase and its research firm are seeking documents to examine internal communications, and the Federal Court will make the final decision. Binance has been active with the delisting of Reef Finance and collaborating with Indian police to catch a solar fraud ring. The delisting of Reef Finance resulted in a significant increase in its price, and efforts are underway to assist those affected by the fraud. The Coinbase Premium Index is awaiting more data to determine the cause of the negative difference, suggesting a possible period of relaxation for whales and institutions.

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