Coinbase Premium Index Negative Amid High ETF Inflows

Coinbase Premium Index was negative on October 11-13, 2024. The reason this is making headlines is due to heavy ETF flows and speculation that the difference would reflect the same sentiment. However, it did not, and many are now interpreting this as an increase in retailer interest.

Coinbase Premium Index essentially measures the difference between Coinbase Pro price and Binance price. Whales and institutions drive the former, while retail movements primarily drive the latter. Net flows on said dates were $252 million and $556 million, respectively. More data is awaited for the concrete conclusion, which may likely suggest that retailers gained the strength to defy the positivity of flows into ETFs.

Meanwhile, Coinbase and the SEC are taking their fight forward in court. The conflict pertains to the manner in which the agency came to a conclusion in declaring ETH security. Coinbase and the research firm it hired are seeking documents to examine internal communications; ultimately, the Federal Court will make the final decision. Should it receive approval, it would illuminate numerous facets that could potentially assist other digital tokens in comprehending the complexities involved in classifying their holdings as securities.

The conflict has escalated to the court level due to the Commission’s previous refusal to share any documents. History Associates Inc. is currently pursuing the US Securities & Exchange Commission to share the important documents. The firm is also gearing up with an argument to present in front of the US District Court for the District of Columbia.

Binance has been more active with two important events: the delisting of Reef Finance and assisting Indian police in catching a solar fraud, which further helped in seizing cryptos.

Reef Finance was reportedly delisted by Binance almost two months ago, a move that has now come to light as the token has surged by almost 1,200% since then. On October 14, 2024, the token’s price reached $0.010, marking a 1,500% increase. Reef Finance delisted the token on August 26, and since then, its market cap has surged to more than $223 million.

Indian police and Binance collaborated to uncover a cryptocurrency within the solar sector. Malicious actors were pretending to have all the required approvals from the government to mislead customers into availing of their services. The fraudulent scheme known as GoldcoatSolar fraud, has resulted in the capture of the malicious actors, and efforts are currently underway to assist the impacted individuals.

The Coinbase Premium Index now waits for more data to come to the table so that a concrete conclusion can be drawn about what’s affecting the difference—keeping it negative despite high flows. Chances are that retailers will be at the forefront to signal a relaxed period for whales and institutions.

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