According to data provided by analytics firm CryptoQuant, the Coinbase Premium Index (CPI) logged a sharp drop on Tuesday after the U.S. stock market open.
This could potentially indicate a substantial outflow from spot Bitcoin exchange-traded funds (ETFs).
The Coinbase premium is often treated as a sign of retail demand in the U.S. A negative premium shows that there is potentially strong selling pressure.
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Worrying ETF outflows
Between Feb. 10 and Feb. 14, a total of $651.83 million was withdrawn from spot Bitcoin ETFs, which might indicate waning interest in the short term.
Still, the institutional adoption of Bitcoin ETFs tripled in the fourth quarter to a whopping $38 billion. This shows that sophisticated investors are becoming increasingly important.
In fact, leading ETF analyst Eric Balchunas believes that institutions will have a 40% share of the total assets in the future.
Bitcoin’s anemic price action
Bitcoin is currently trading at $94,239 after dropping to an intraday low of $93,434. The leading cryptocurrency has been struggling to reclaim the pivotal $100,000 level.
