Coinbase’s Bitcoin reserves have been steadily decreasing over the past few months, according to CryptoQuant, a well-known on-chain analytics company. The decline in BTC reserves on the crypto exchange started on February 18th of this year and has been attributed to increased demand sparked by Spot ETFs. The official X account of the platform confirmed the ongoing decrease in Bitcoin reserves.
On February 18, 2024, Coinbase held 1,044,997 $BTC, but this number dropped to 878K due to the surge in demand caused by Spot ETFs, as reported by @burak_kesmeci. The impact of spot ETFs on the exchange’s reserves was significant, leading to a substantial decrease in BTC holdings.
In March, Coinbase experienced its lowest BTC holdings in 9 years, with a major outflow in reserves. This trend continued into March 31st, with reports indicating a further decrease in Bitcoin reserves. By May, the on-chain data showed a significant plunge in BTC reserves, with only 267K BTC remaining, down from the previous 418K. As of June 1st, Coinbase had 888,337 BTC in its possession.
The potential cuts in interest rates in September are expected to have an impact on the BTC reserves of Coinbase. Despite the exchange’s efforts to maintain its reserves, the gradual decline in Bitcoin holdings continues to be a prominent trend, raising concerns about the future of Coinbase’s BTC reserves.