Sup, nerds!

Here’s what you’re getting in today’s edition:

• 💅 This is cool: 5% of VanEck's Bitcoin ETF profits going to BTC developers
• 🔎 This seems important: A solid sign we'll have a BTC ETF by Weds
• 🤝 Partner: You can capitalize on current high interest rates — here’s how.
• 🔪 Let's dissect this: If you can't beat 'em, buy 'em.

Terms used in this edition (click for an explanation, or ask Web(GPT)3!):
​Decentralization, Self Custody.

💅 This is cool:

​5% of Bitcoin ETF Profits? That’s Cool! But What’s the Catch?​

In one sentence: VanEck pledged 5% of potential profits from its spot Bitcoin ETF (if it gets approved), to Bitcoin core developers at ​Brink​.

You know those situations that make you go "that's cool...but what's the catch?"

E.g. Winning a car on a game show (👈 that's cool!)

...then finding out you're going to have to pay 30% of the cars retail value in taxes (👈 aaaand there's the catch).

Yeah, well, this latest announcement from investment firm VanEck has us asking the same question.

On Friday, VanEck pledged 5% of potential profits from its spot Bitcoin ETF (if it gets approved), to Bitcoin core developers at Brink, with the message:

Which is very cool!

But we're struggling to connect the dots and see what's in it for VanEck...

Cause (donation or no donation) Bitcoin developers and general crypto natives aren't going to recommend the purchase of Bitcoin via an ETF - they're going to recommend direct purchases and self custody.

Whereas investors from the world of traditional finance aren't going to care about donations to the hard working devs that have made Bitcoin what it is today - they're only going to care if adding it to their portfolio will be of benefit.

Here's our best guess at what's happening here:

Maybe it's just an honest-to-goodness well-intentioned donation, made in the hopes news publications (hi 👋) will write about it?

If so, 5% seems like a steep sum to pay for a bit of positive press...

But hell, if it means Bitcoin devs getting some of that sweet sweet Bitcoin ETF money - we'll gladly oblige!

🥇 Want the news before anyone else?

🔎 This seems important:

​This is a Solid Sign That We’ll Have a Bitcoin ETF by Wednesday​

In one sentence: Major US stock exchanges filed amended ETF applications, suggesting they’re confident the SEC will approve a spot BTC ETF soon.

When you make a reservation at a restaurant, it's not a binding agreement for you to show up...

But it's a pretty solid indication that you're going to be there.

Same goes for these new exchange filings for a potential spot Bitcoin ETF (aka a way to buy/sell BTC on the stock market).

Last month, the SEC requested a bunch of changes to the ETF applications filed by the likes of BlackRock, Grayscale, Fidelity and others - which they've all since amended.

That ain't exciting in itself (this back-and-forth has been going on for months now).

What's exciting is that for the first time since this process has started, the major stock exchanges responsible for listing these BTC ETFs have all filed the amended documents as well.

Ok, ok, "stock exchanges file required legal documents" isn't all that exciting on the surface...

But it's the 'Bitcoin ETF equivalent' of making a reservation at a restaurant.

Sure, it doesn't guarantee an approval...

But it's a pretty solid indication that it's going to happen some time this week.

(Between now and Wednesday, to be specific!).

🤝 Partner:

​You Can Capitalize on Current High Interest Rates — Here’s How​

Interest rates are at 22-year highs, but you can take advantage of them.

With rates hovering around 5%, high-yield savings accounts present an opportunity for substantial returns through compound interest.

Offering up to 10 times the return compared to regular savings accounts, these accounts are ideal for short- and long-term goals.

See Money's list of High-Yield Savings Accounts today to discover how much you could earn.

​

🔪 Let's dissect this:

​"If You Can't Beat ‘Em, Buy ‘Em" - Coinbase​

In one sentence: Coinbase just bought an entity in Cyprus, allowing them to trade derivatives in the EU.

One of the first things they teach you in business school? When you're the boss, your job is to hire people who do things better than you.

At least, we assume that’s what they teach you (we wouldn’t know).

Point is: if you’re the CEO, and you need legal work done - you’re going to hire a lawyer.

And this is exactly what Coinbase is doing, but with derivatives.

Lettuce explain…

Derivatives in cryptocurrency are the same as they are in traditional markets:

A financial product that ‘derives’ its value from something, without actually being that thing.

E.g. A futures contract on Bitcoin is a ‘derivative,’ in that it’s a bet on the future price of Bitcoin, but isn’t Bitcoin itself.

Which is kind of like betting on a sports team...

It’s not like you actually own the sports team when you place a bet, you’re just predicting whether they’ll win or lose.

And in the Crypto world, 75% of all crypto trades are derivatives - which means there’s a bunch of money to be made in supporting derivative trades.

Players like Binance, OKX, Bybit, and Deribit have been leading the way for derivatives in the global trading market, and Coinbase wanted a piece...

So, here's where Coinbase’s new ‘hire’ comes in:

Coinbase has been vocal about pursuing global growth - and with a regulatory landscape ever changing in the EU, they would have had to have waited for a license to sell derivatives.

So instead, they 'hired out,' acquiring a MiFID II-licensed entity in Cyprus.

Allowing Coinbase to offer cryptocurrency-based derivatives in Europe and play in the global derivatives market.

The purchase will still need to be approved by regulators, but this option will help get them into the game without having to learn all the processes from scratch.

Smart!

What Are Crypto Derivatives?

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👇 Other stuff you may have missed

• 👀 Web3 Watch: Ready Player One-Style Metaverse Launches With Warner Bros Support​
• 🏃 Spot Bitcoin ETF Applicants Clear Key Hurdle on Path to SEC Approval​
• ❌ X Account of Crypto Auditing Firm CertiK Hacked​
• ⛔️ SEC Reissues Crypto ‘FOMO’ Warning Amid Hope for Spot Bitcoin ETFs​
• 🧑‍⚖️ Logan Paul Promises CryptoZoo Refunds, as Long as You Don’t Sue Him​

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Alright, that’s it for today!
Love to the family,

​Chevy, Seb & The Web3 Daily Team.

P.S. Want to learn how to research and value cryptocurrencies? We created a framework that does just that.

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