- I have created a simple free indicator anybody can use that compares the Spot Price of Coinbase (BTCUSD) to the spot price of other major exchanges. (Disable the labels if you add this to your chart to save space)
- The Coinbase (SSA) by the SEC means all institutional activity has to go through the spot Coinbase market meaning there's going to be billions of dollars worth of reassure on the Coinbase liquidity translating to there will be major premiums never seen before for Bitcoin on Coinbase.
- This will in return will make Coinbase act like a blackhole where the gravity will pull in Bitcoin from all other market participants chasing the premium.
- Any non US exchange such as
Binance that holds as of today, 565,387 BTC
Bitfinex 373,985 BTC
Will see their balances reduced dramatically, this will completely take over the entire Bitcoin commodity market and these other exchanges will be left with the dying alt coin market.
- So the question is how high will the BTCUSD premium on Coinbase get if the Spot ETF's are approved next week? this is anybody's guess. But either way I'm becoming bullish on Coinbase even though I don't agree with their alt coin listings, the amount of fee volume they will experience will dwarf any competitors for the next year.
- Coinbase will become the biggest Bitcoin custodian by magnitudes of hundreds of billions.
- Bonus > for people trying to track this via stable coins it simply will not work, almost all of the SPOT ETF volume will be deposited funded by spot banking US Dollars. So the only possible way to track how this unfolds is comparing the Coinbase price to others.