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⚡$25 Billion Secrets Revealed🍟

Croxroad

24 Sep 2023 — 5 min read

☕️ GM Dear Plebs!

Here is Crox Road, your daily dose of orange pill that will turn you into a Bitcoin Maxi.

The menu for today:

👀 Coinbase's $25 Billion Asset Insights

Arkham Intelligence, and they're into the whole blockchain and cryptocurrency scene. They did some snooping around and found out that Coinbase, you know, has a massive stash of Bitcoin. Like, almost a million of those digital coins! But here's the interesting part – they didn't just have all of that in one place. Nope, it's spread out across a whopping 36 million different Bitcoin addresses. That's like having money in 36 million different bank accounts, but in the crypto world.

Now, these Bitcoins they're holding? They're worth around a mind-boggling $25 billion! That's a crazy amount of money. And here's the deal – most of these Bitcoins aren't just sitting there for fun. Coinbase is basically looking after them on behalf of their customers. It's like they're the guardians of this digital treasure.

But wait, there's more. Coinbase isn't just into Bitcoin. They've got their hands in the cookie jar of other cryptocurrencies too, known as altcoins. Some of these altcoins, the ones the SEC (that's the U.S. Securities and Exchange Commission) calls securities, are also part of their stash. So, it's not just Bitcoin – they've got a diversified portfolio going on.

And here's something interesting: one of their biggest Bitcoin vaults, which they call a "cold wallet" (probably because it's super secure and not connected to the internet), has around 10,000 Bitcoins in it.

Coinbase has a ton of Bitcoin, and honestly, it's not shocking news. The CEO, Brian Armstrong, has been talking up Bitcoin, calling it the big shot in the crypto world. Basically, he's saying that Bitcoin is the heavyweight champion of cryptocurrencies.

Coinbase is so gung-ho about Bitcoin that they even want to support something called "Bitcoin Lightning." It's like they're showing their love for Bitcoin by planning to make it even better and faster to use.

Coinbase could be hiding even more Bitcoin in other wallets that haven't been found. Imagine if they have an even bigger secret stash we don't know about! It's like finding an extra cookie jar in the back of the pantry when you thought you'd already found all the cookies.

A lot of people in the United States use Coinbase for their cryptocurrency needs. And because Coinbase has this massive amount of Bitcoin, it's like a sign that cryptocurrency is really catching on in the country. People are getting into it big time.

Some of these Bitcoins that Coinbase has might not just belong to regular folks like you and me. They could be set aside for big institutions, like those fancy investment companies. Coinbase even has a special service called Coinbase Custody just for these big players, kind of like how banks have special accounts for wealthy clients. So, it's not just individuals; even the big shots might be in on this cryptocurrency action through Coinbase.

🦴 October's Crucial Role in Crypto: SEC Decisions Await

The SEC has a big decision to make. They need to figure out if they want to challenge a court's ruling in a case they had against an asset manager called Grayscale. They've got until October 13th to decide (which is 45 days after the court made its decision).

Back in August, Grayscale scored a major win when the District of Columbia Court of Appeals said that the SEC didn't have a good enough reason to say no to Grayscale's application. So, the court basically told the SEC, "Hey, take another look at this."

Now, the SEC is taking some time to review what the court said before they make up their minds about what to do next.

If the SEC decides to challenge this decision, they have a couple of options. They can ask the US Supreme Court to take a look at the case by filing a special request called a 'writ of certiorari.' Alternatively, they can request an 'en banc' review, where all the judges from the DC Court of Appeals will look at the case again.

Now, if the SEC does go for an appeal, it's not great news for the crypto community. It could mean a longer wait for a Spot Bitcoin ETF, which is something many people are eager to see happen.

But, if the SEC chooses not to appeal, it basically becomes a rule that the spot and futures market are connected. That means the SEC's argument about the spot market being more prone to fraud and manipulation won't hold as much weight anymore.

In October, there are some important dates for spot Bitcoin ETF applications. The SEC needs to make decisions about these applications, which could be to approve, deny, or delay them. Notable dates include October 16 for the Bitwise Bitcoin ETP Trust decision and October 17 for several others like the iShares Bitcoin Fund, VanEck Bitcoin Trust, and more.

But, it's widely expected that the SEC will probably delay their decisions again, and we might have to wait until next year for the next round of decisions.

If the SEC keeps delaying its decisions on these applications, we might not get a final answer until January 10, 2024, which is the last deadline for the ARK 21Shares Bitcoin ETF.

But, there's a silver lining for October. The SEC is likely to give the green light to pending Ethereum futures ETF applications. Volatility Shares is expected to launch theirs on October 12, and others might follow suit soon after.

🌟 Shooting Star

A shooting star on a candlestick chart is like a quick jump in price that reaches a high point but then comes back down to close just below where it started. It's called a shooting star because it looks like a star falling with a long tail pointing down. Traders pay attention to it to predict market movements.