Investors Demand On-chain Proof as Fears Grow Over Coinbase’s Bitcoin ETF Custody ⚡️

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📅 Today

🔍️ Market Outlook For The Week

• Overall Bias - Cautious 🙏 

• Post FOMC, BTC is re-testing the bull-market support band at $62,700-$64,000, trying to break this major resistance.

• This is a crucial price level. If BTC gets rejected here, further downside can be expected.

• Historically, Q4 has been the best performing quarter for BTC, so we can expect some bullish momentum due to seasonality.

• For the bulls, a breakout above $67,400 will take BTC to new all-time highs

• It is wise to not take any new leveraged positions till BTC closes above $67,400, and just DCA in spot instead.

BlackRock Requires Coinbase To Process BTC Faster ⚡️ 

BlackRock has filed for an amendment for its Bitcoin ETF, following widespread investor concerns over Coinbase’s onchain settlement practices.

Investors are concerned that Coinbase is buying “paper BTC,” or Bitcoin IOUs, on behalf of Bitcoin ETF issuers, hence suppressing Bitcoin price.

They have thus demanded 12-hour BTC withdrawals from Coinbase. Increasingly, investors have been asking Coinbase to provide onchain proof of the Bitcoin bought on behalf of the spot ETFs

Coinbase is the custodian for 10 out of 11 spot Bitcoin ETFs and eight out of the nine recently approved Ethereum ETF’s in the USA.

Kamala Harris Vows to Boost Digital Assets if Elected ❗️

making it her first public endorsement of these technologies as part of her presidential campaign.

She said that her administration would be committed to creating a stable environment for businesses with clear, straightforward regulations.

This marks a shift from the current administration under President Biden, which many view as being unfriendly toward crypto.

Harris's approach signals a clear break from the past, embracing innovation and positioning herself as a candidate ready to harness the potential of new technologies.

📕 Educational

Why is Aave dominating the DeFi landscape?

AAVE currently has a 64% market share in the lend/borrow market, 4.6x more active loans than it's #2 competitor, and 6.3x more TVL than the top two lend/borrow apps on Solana combined.

A quick update on the leading DeFi lend/borrow app using Token Terminal's new dashboard feature:

- Active Loans: Aave currently has $7.2b outstanding loans (60% off it's all-time high)

- Fees vs Revenue: Aave did $293m in total fees over the last year. The DAO kept 13.3% of that, or $38.9m. The remaining $254m? It was paid to the lenders that provided liquidity for the loans.

- Profitability: from an onchain data perspective, Aave became profitable early in '23 and has remained that way since.

Onchain Profitability = DAO revenue less token incentives.

The takeaway? Aave no longer has to provide token incentives to get users.

- Active Loans by Chain: 84% of Aave's active loans are on Ethereum L1. Arbitrum is #2 with 6%.

Notably, active loans on Avalanche are down 95% since last cycle.

- Valuation: Aave's price-to-fee ratio (the equivalent of price-to-sales in TradFi) is currently 7.2. It was 2.8x a few months ago.

For reference, JPM has a p/s ratio of 3.7. BOA is 3.3. Goldman Sachs is 3.3.

📊 Stat of the day

📈 Chart of the day

Rationale & Confluences

• Macro breakout re-test zone

• 4H horizontal support

• Bull market support band support

• 20 EMA support

• Source : Cointraction

🤣 Meme of the day

That concludes our update for today!

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Disclaimer : None of the content shared in the newsletter is financial advise. Always do your own research and analysis before investing.