On-chain data compiled by CryptoQuant indicates a flow of Bitcoin (BTC) from Binance to Coinbase.
Over the past day, Coinbase’s reserves have grown by approximately 12,000 BTC, while Binance’s reserves have decreased by 5,000 BTC, as reported by the research firm.
“The decrease in Bitcoin reserves on Binance appears to be due to retail outflows.” – Bradley Park, Web 3 analyst at CryptoQuant.
“The market is still nervous about the recent legal implications against Binance,” Greta Yuan, head of research at Hong Kong-based digital-asset platform VDX said in a note to CoinDesk. “In the short term, we will see more users move funds to compliant or licensed exchanges for peace of mind.”
“Coinbase has stood the test of time,” she added.
Some analysts suggest that Binance’s recent settlement with the U.S. Department of Justice was the final hurdle for obtaining approval for a spot bitcoin ETF, impacting fund flows.
Crypto services provider Matrixport stated, “With this plea deal, the expectations for a spot Bitcoin ETF might have increased to 100% as the industry will be forced to follow the rules that TradFi firms must follow.”
CryptoQuant noted a 1,000 BTC withdrawal from Coinbase, which Bradley Park of CryptoQuant suggested could be an “institutional over-the-counter (OTC) trade and can be seen as anticipation of approval of ETFs.”
While CryptoQuant data shows a consistent decrease in bitcoin reserves on exchanges throughout the year, considered a bullish sign, some analysts argue that trust in centralized exchanges has diminished since the collapse of FTX last year. Investors are now opting to hold their assets elsewhere.