Brian’s Big Bag
At what amount does the banking cartel begin to ask difficult questions such as “Who holds the bag?” and “Who has our coins?” As ETF approval approaches, the question is, “Who’s holding the bag?” And while everyone on Twitter seems to be an ETF expert and is breaking news about the application’s punctuation changes, Coinbase has been quietly positioning itself for perhaps one of the most important roles in the future of paper Bitcoin. Coinbase is currently registered as the custodian for 9 out of 12 Bitcoin spot ETF applications. Read it again.
Bitcoin Spot ETF Custodian List
Source: Bloomberg Intelligence, SEC filing
Their role in all ETFs except their coverage on Coinbase makes you wonder what’s going on behind the scenes. Less than 10 days later, Coinbase made a surprising change in leadership by hiring custodian CEO Aaron Schnarch and Rick Schonberg, a 30-year Wall Street veteran.One You will lead the business. Two weeks before the ETF’s approval, Coinbase, which holds a 75% custodian role across its U.S. spot Bitcoin ETF business, nuked its custodian and replaced him with the person best suited to the brand. Call me crazy, but this is how the NY Banking Cartel operates. Do you feel like outsiders are welcome? You think the NY Banking Cartel will bend the knee to Bay Area Grace.2?
Aside from some shady trading ideas with the NY Banking Cartel, Coinbase’s position is worth a closer look, especially if you’re interested.three About the risk of detention. Custody risk often involves entrusting the custody and management of financial assets to a third party, known as a custodian.
Storage hazards. The risks associated with entrusting the custody and management of financial assets to a third party, often known as a custodian.
This risk can take many forms.
- Operational Risk: Risk of loss due to operational failures of managers, such as management errors, technical failures, process failures, and loss of keys.
- Fraud Risk: The risk that a custodian may engage in fraudulent activity, such as misappropriating assets or falsifying records.
- Credit Risk: The risk that a trustee may become insolvent or unable to meet its obligations, potentially resulting in loss of assets.
- Legal and regulatory risk: The risk of loss that may result in fines, penalties or legal action due to non-compliance with laws and regulations.
- Counterparty Risk: In situations where a custodian enters into a transaction with another party on behalf of a client, there is a risk that the counterparty will default or fail to perform its obligations.
- Security risk: The risk of assets being stolen or lost due to poor physical and digital security measures.
As I was going through this list, I put a mental checkmark next to every item as a legitimate custody risk, since 75% of Bitcoin ETFs pass through Coinbase’s hands. Look, I’m not writing this to cause concern. I just want to say that the change in leadership is very strange and the concentration of funds under a single custodian is a major red flag. This situation leads to the more likely 6102 Bitcoin scenario.
Developments surrounding Coinbase’s role as custodian for 9 out of 12 Bitcoin spot ETF applications raise significant concerns about custodial risk. With over 75% of the market share under Coinbase’s control, investors should carefully consider the potential risks associated with relying on a single entity for the storage and management of paper Bitcoin reserves. The convenience that centralized storage services offer may seem attractive, but the risks cannot be ignored. It is important for individuals to do their own research and understand the implications of the custody agreement before investing in a Bitcoin ETF. This will help you make informed decisions and minimize your exposure to threats from 6102 Bitcoin, regulatory seizures, cyberattacks, and other unexpected events. Ultimately, ETFs will be approved and things will get very strange. The NY Banking Cartel will spur Bitcoin and there will be Brian’s Big Bags.
footnote
- This man’s resume is very suitable for the role. If you want to be divisive about these things, take a look. The point I want to make is that they brought in a stud to do this. ↩︎
- The term “grey” was coined (as far as I know) last year when Balaji did a three-hour podcast with Marty. But the idea of gray is that the country is divided into blues and reds as political tribes. There is a third tribe called the Grays who are not loyal to either side. Gray is a capitalist builder who just wants to build. ↩︎
- I am not really interested in this product because I am not a customer. You just notice that there is an elephant in the room. Not a key, not a coin. ↩︎
