U.Today - A sudden Bitcoin (BTC) transfer worth 1,097 BTC, equivalent to $94 million, has just landed on the largest cryptocurrency exchange in the U.S., Coinbase (NASDAQ: COIN ). As reported by Whale Alert, the sender is an unknown address, "bc1qumh."
However, more sophisticated data from Arkham Intelligence identifies the wallet as belonging to ARK Invest, or the investment company’s Bitcoin ETF known by the ticker ARKB. This finding completely changes the narrative, as in the last 24 hours, exchange-traded funds focused on the major cryptocurrency have experienced significant outflows worth $145.58 million.
It means that the actual holders of Bitcoin ETFs are selling the ETF, which prompts their issuers to sell BTC used as collateral for the financial instrument. In this light, the fact that ARK Invest sent Bitcoin to Coinbase may reflect the selling activity currently underway with ARKB itself.
Data from Lookonchain also confirms this, as ARKB alone saw outflows worth 1,027 BTC in the last day.
Bitcoin up, ETF down
It is interesting to note that the negative trend in Bitcoin ETFs comes at a time when Bitcoin itself is experiencing a significant rise in price. Since the beginning of the week, the price of the cryptocurrency has gained 5%, with about 1.6% added during today’s trading session alone.This "dance" between Bitcoin price action and Bitcoin ETF outflows remains a key point of attention for market participants.
Like an old drill — which came first: the chicken or the egg? — it is important to understand what came first, the rise in the Bitcoin price or outflows from ETFs? The answer will hold the key to the future of the cryptocurrency market.
This article was originally published on U.Today