Coinbase Institutional Market Call

In this episode, we welcome Ralph Achacoso, CIO of Factor6 Capital, to dive deep into the intersection of Bitcoin mining and AI, discuss takeaways from Token49, and explore broader market movements and trends in the digital asset space. Our panel covers everything from ETF flows and funding rates to the potential launch of IBIT options, offering an insightful and timely discussion for crypto investors.

Topics Covered:

• Market Overview: We kick off with a quick market update, covering ETF flows, funding rates, and key movers shaping the market.
• BTC Miners and AI Integration: We explore how BTC miners are engaging with AI, as well as the challenges and barriers of AI implementation in mining.
• AI x Crypto: Ralph shares how he thinks about AI x Crypto and where value could accrue.
• IBIT Options Overview: The panel discusses the potential launch of IBIT options, comparing them with the BITO options available today, and Ralph provides his expert perspective.
• Token 49 Rundown: David Duong gives a detailed breakdown of Token 49 discussions, highlighting key takeaways and what to watch out for.
• Macro Outlook: With recent Fed actions, David Duong provides a broader market outlook and what investors should expect moving forward.
• Onchain Developments: David Han wraps up with a look at the latest onchain activity, including developments around Ethereum's Pectra upgrade and  Wrapped Bitcoin.

Make sure to like, subscribe, and check out the links to our research in the show notes for deeper insights.

Host: Ben Floyd, Head of Execution Services
Guest: Ralph Achacoso, CIO of Factor6 Capital

Panelists: 
David Duong, Head of Institutional Research
Greg Sutton, Senior CES Trader
David Han, Research Analyst
Links: Coinbase Research

In this episode, we explore the latest developments in the crypto space, including deep dives into ETF flows across BTC, ETH, and SOL, discussing the unique narratives surrounding each token and how these impact adoption.

Key Discussions:

(2:05) ETF Flows & Drivers:

An in-depth look at the drivers behind BTC, ETH, and SOL ETF flows, and how different narratives shape market behavior and token adoption.

(12:40) New Blockchain Launches:

Discover the new chains launching by year-end, the apps our team is experimenting with, and expert insights on their potential impact.

(17:05) Market and Macro Updates:

Jackson Hole & Nvidia Earnings:

Josh covers key takeaways from Jackson Hole, while Dhan discusses Nvidia's earnings and the broader implications for the crypto market.

(23:15) Onchain & Ecosystem Updates:

MakerDAO’s Sky Update:

David Han provides a comprehensive overview of the latest changes in Maker’s ecosystem and governance.

(26:17) Babylon on BTC and Blinks on SOL:

Updates on Babylon’s BTC staking launch and the innovative Blinks on SOL, allowing multiple actions in one link.

(29:18) Tokenization & Story Protocol:

Learn about Centrifuge’s new lending market on Base, using Coinbase verifications to reduce friction, and Story Protocol’s recent raise and the rationale behind their own Layer 1.

Join us for a detailed analysis of these crucial developments, offering valuable insights into the evolving landscape of digital assets and blockchain technology.

Subscribe and stay informed: Don’t miss out on our continued deep dives into cryptocurrency trends, market dynamics, and the latest innovations shaping the future of finance.

In this episode, we sit down with Jim Hiltner, co-founder of Superstate, to explore the cutting-edge intersection of traditional finance and decentralized finance. Jim provides insights into the founding of Superstate, the company's long-term vision, and an in-depth overview of their innovative products, including USCC, their carry product. We delve into the nuances of market behavior, such as why term futures can be positive when perpetuals are negative, and discuss who their clients are, how they navigate regulatory challenges, and the exciting opportunities they see on the horizon.

1:00 Basis and funding rate updates

Interview Highlights:

3:30 Superstate's Origins and Vision: Jim shares the story behind founding Superstate and the company's long-term goals in the evolving financial landscape.

7:50 Product Overview: A detailed look at Superstate's product offerings, with a special focus on USCC.

18:40 Market Mechanics: Exploring why term futures can sometimes be positive when perpetual futures are negative, and what this means for their clients.

23:00 Regulatory Strategy: How Superstate approaches regulation today and anticipates future changes.

27:00 Technology and Future Opportunities: An inside look at Superstate's tech stack and where they see the next big opportunities in the market.

Market Color:

34:41 13F Filings Summary: A review of the latest 13F filings and the rise in investment advisors.

38:07 ETF Updates: The latest flows in the Bitcoin and Ethereum ETFs.

39:10 BTC Mining & AI: Updates on the Bitcoin mining sector and the integration of AI.

Political Climate Update:

41:30 DNC Insights: An update on the current political landscape and its implications for the crypto industry.

Macro Update:

42:20 Jackson Hole & Fed Minutes:insights: What to look out for from Jackson Hole and in the Fed Minutes

44:02 Rate Cut Expectations: A discussion on the evolving expectations for rate cuts.

Onchain Developments:

44:32 MKR wBTC Vote: Updates on the MakerDAO wBTC vote.

46:15 Eigenlayer Updates: Thoughts on the two recent developments from the Eigenlayer project.
 

This episode is packed with expert insights, timely updates, and strategic discussions essential for anyone navigating the rapidly evolving world of digital assets. Whether you're an investor, a market enthusiast, or simply interested in the latest trends in DeFi, this conversation with Jim Hintner and our expert panel offers valuable knowledge to keep you informed and ahead of the curve.

Subscribe and stay informed: Don’t miss out on our continued deep dives into cryptocurrency trends, market dynamics, and pivotal developments influencing the global markets.

Special Guest:

Jim Hiltner, Co-Founder & Head of BD, Superstate

Host:

Ben Floyd, Head of Execution Services

Panelists:

David Duong, CFA - Head of Institutional Research

Greg Sutton, Senior CES Trader

David Han, Research Analyst

Melanee Hannock, the Chief Digital and Innovation Officer of ALSAC St. Jude Children’s Research Hospital, shares her background in marketing and technology and how she helped pioneer St. Jude’s acceptance of cryptocurrency donations. St. Jude first started accepting crypto as a way to tap into an emerging donor demographic and new revenue stream. Hannock discusses the key benefits as well as challenges of accepting crypto as part of their charity efforts. She also looks ahead to the growth in this sector and offers helpful guidance to other non-profits considering crypto philanthropy to support important missions, as blockchain technology becomes more mainstream.

Market Movements:
Later in the episode, we also discuss the latest in crypto markets. Most major coins recovered after last Monday’s sell-off, with moderate strength in BTC and ETH while altcoins have struggled to gain momentum due to inflationary unlock schedules-- albeit there have been some notable exceptions. Meanwhile, in web3, we discuss the vulnerability patch in Solana and why it got a mixed reaction from the community. Finally, we discuss our new research report on “ETH and the Rise of L2s,” where we parse the economics of blockchain scaling and the tradeoffs specific to an L2-focused roadmap.

Special Guest:

• Melanee Hannock, Chief Digital and Innovation Officer of ALSAC St. Jude Children’s Research Hospital

Host:

• David Duong, CFA - Head of Institutional Research

Panelists:

• Georg Toropov, Senior CES Trader
• David Han, Research Analyst

Crypto markets are moving in sympathy with other asset classes as concerns over a global recession and rising tensions in the Middle East proliferate. While prices have recovered somewhat, the uncertainty lingers. 

Follow our Head of Research David Duong, Senior CES Trader Georg Toropov, Head of Prime Financing Trading Sarah Williamson and Research Analyst David Han as they discuss what happened in markets, the challenges ahead for the Federal Reserve, the current financing situation and what to expect for the rest of 3Q24. 

They also look at the plethora of web3 and onchain developments including the latest with Eclipse, Avalanche's partnership with the California DMV, Jupiter's announcement to reduce it's JUP supply and the recent Terra hack.

2:30 What’s driving the big market moves
8:25 Market technicals
10:25 Potential Fed response
15:23 Endogenous crypto catalysts
17:50 Financing update, leverage, and margin calls
24:18 Crypto flows
27:00 ETFs
30:40 Onchain updates
36:40 Jupiter cutting token supply
37:54 Ethereum Pectra upgrade

Please like and subscribe to our podcast and visit our research portal for more content.

Host: David Duong, CFA - Head of Research

Panel:
Georg Toropov - Senior CES Trader
Sarah Williamson - Head of Prime Financing Trading 
David Han - Research Analyst

In this episode, we have a special guest, Jack Platts, co-founder of Hypersphere, joining us to provide deep insights into the cryptocurrency market. We delve into significant market movements, macroeconomic trends, and key insights from the newly released Q3 Guide to Crypto Markets. Our expert panel, featuring Jack Platts, Greg Sutton, David Duong, and David Han, offers comprehensive analyses and actionable strategies for investors. 

(1:05) Interview with Jack Platts:

Background and Career:

Jack shares how his experience at the Web3 Foundation prepared him to launch Hypersphere.

(6:30) Political Climate and Crypto:

Discuss the current US political climate and its impact on crypto, including insights from the event at Mar-a-Lago.

11:40 TON Ecosystem:

Explore the TON ecosystem and its potential.

19:47 Early-Stage Investments:

Insights into writing checks into early-stage Layer 1 deals like Berachain.

28:30 Future Excitement:

What excites Jack the most about the future of crypto.

35:54 Market Movements:

Post-Trump BTC Nashville:

Greg Sutton discusses market movements following Trump's appearance at BTC Nashville.

37:55 ETH ETF Update:

Explore the latest updates on Ethereum ETFs and how large wallet movements are influencing the market.

39:35 Macroeconomic Trends:

Key Economic Indicators:

David Duong and Greg Sutton analyze crucial economic data, including JOLTS and consumer confidence on Tuesday, and significant earnings reports from MSFT, Meta, and the FED on Wednesday, followed by Amazon and Apple on Thursday.

44:10 Onchain Developments:

Governance and Protocol Updates:

David Han delves into recent governance activities on Compound, and the latest updates on AAVEnomics and its safety module.

48:45 Q3 Guide to Crypto Markets:

Report Insights:

David Duong and David Han discuss the changes made from the previous edition of the Guide to Crypto Markets.

Compelling Trends:

Highlight the most compelling or surprising insights from the report and the sectors or assets presenting significant opportunities.

Strategic Adjustments:

Based on the findings in the Q3 Guide, they offer advice on how investors should adjust their strategies to navigate the evolving market landscape.

This episode is packed with expert analyses, timely updates, and strategic insights essential for anyone involved in the cryptocurrency market. Whether you're an investor, a market enthusiast, or simply interested in the latest trends, this discussion provides valuable knowledge to help you stay ahead in the rapidly evolving world of digital assets. 

Download the Guide to Crypto Markets Here: 

Subscribe and stay informed: Don’t miss our continued deep dives into cryptocurrency trends, market dynamics, and pivotal developments influencing the global markets.

In this comprehensive episode, we delve into the latest developments, from the impact of ETH and BTC ETFs to significant political shifts and long-term catalysts. Our expert panel, including David, Greg, and David Han, provides in-depth analyses and insights into the forces shaping the future of digital assets.

(2:08) ETH and BTC ETF Updates:

• ETH ETFs Performance: David and Greg discuss the trading volume of ETH ETFs so far, the 10% drop in ETHE, and the implications of moving ETHE to mini ETH. They also cover issuer fees and Bitwise's disclosure of ENS addresses for spot Ethereum ETF holdings.
• (7: 05) BTC ETF Inflows: Greg highlights the significant inflows into BTC ETFs, with IBIT receiving $526 million yesterday alone.

(10:58) Political Landscape and Predictions:

• Biden Drops Out: Our panel discusses the implications of Biden dropping out of the race, Kamala Harris stepping in, and current prediction market trends showing 64% for Trump (down from 70%) and 33% for Kamala.
• Fairshake Super PAC: Explore how the pro-crypto group Fairshake has become the largest super PAC of the election cycle, raising over $200 million.
• Trump at Bitcoin 2024: Speculation around Trump's potential announcement to add Bitcoin to US reserves during his speech at Bitcoin 2024 on July 27th.

(20:09) Long-Term Crypto Catalysts:

• (20:20) Mt Gox Distributions: Greg and David Duong discuss the upcoming ~$3 billion distribution in kind from Mt Gox and its potential market impact.
• (21:30) FTX Claims Trading: An update on FTX claims trading ~$1.20, the unclear timeline, and hedge funds accumulating positions, now totaling $400 million.

Market Flows and Volumes:

• Funding and Futures Update: Greg provides insights into general market flows, volumes, and the latest updates on funding and futures.

(23:55) Real World Asset Developments:

• Private Credit Fund: David Han covers Hamilton Lane's launch of a $920.7 billion private credit fund on Solana and Ethereum, highlighting the integration of real-world assets into blockchain platforms.

(25:55) Onchain Activity:

• Solana vs. Ethereum DEX Volumes: David Han reports that Solana DEX volumes have recently surpassed Ethereum DEX volumes on a monthly basis.
• Pump.fun Revenue: Recap of Pump.fun generating $1 million in daily revenue, surpassing MakerDAO.
• Memecoin Volumes: Analysis of memecoin volumes being more "sticky" than anticipated.

This episode offers a thorough exploration of the latest trends, political developments, and long-term catalysts in the cryptocurrency market. Whether you're an investor, a crypto enthusiast, or simply curious about the evolving financial landscape, this discussion provides valuable insights into the strategic movements shaping the future of digital assets.

Subscribe and stay informed: Don’t miss out on our continued deep dives into cryptocurrency trends, market dynamics, and pivotal developments influencing the global markets.

Host:

• Ben Floyd, Head of Execution Services

Panelists:

• David Duong, Head of Institutional Research
• Greg Sutton, Senior CES Trader
• David Han, Research Analyst

Join us in this episode as we dissect the latest trends and shifts in the cryptocurrency market, along with key political influences and macroeconomic indicators. Our discussion spans from significant market movements to in-depth insights on recent political developments and major cryptocurrency conferences. 

Market Outlook: 

• German Government and Mt. Gox Flows: The team analyzes the impact of the large financial flows from the German government and ongoing Mt. Gox settlements while also discussing the recent positive price movements in the crypto market. 
• ETF Dynamics: Dive into the strong inflows into BTC ETFs with updates on both ETH and SOL ETFs, exploring how these financial products are shaping market behavior. 

Macro Economic Trends: 

• Inflation and Interest Rates: Examine the latest data showing a decline in supercore inflation for two consecutive months and how this is shaping expectations for potential rate cuts. 
• Powell’s Testimony: Reflect on the implications of Federal Reserve Chair Jerome Powell's recent testimony, which appeared more lenient towards the possibility of rate cuts, assessing its impact on financial markets. 

Political Landscape: 

• Trump’s Crypto Influence: Speculate on what Donald Trump’s political actions could mean for the future of cryptocurrency, considering his past statements and potential policies should he re-enter office. 
• JD Vance’s Crypto Advocacy: Explore the background of JD Vance and his history with cryptocurrency, discussing how his position could influence legislative attitudes towards digital assets. 

ETHCC Highlights and Sector Insights: 

• Ethereum and Layer 1 Direction: Gain insights into the strategic direction of Ethereum’s Layer 1 from the latest ETHCC conference. 
• Layer 2 Differentiation and Challenges: Discuss the differentiation among Layer 2 solutions, touching on community fragmentation, interoperability, and the update on consumer applications, which are crucial for the adoption and growth of these technologies. 

Subscribe and stay informed: Don’t miss out on our continued deep dives into the trends, dynamics, and pivotal developments influencing the cryptocurrency markets globally. 

Host: 

• Ben Floyd, Head of Execution Services 

Panelists: 

• David Duong, Head of Institutional Research 
• Joshua Pak, CES Trader 
• David Han, Research Analyst 

Decoding Crypto Dynamics: Market Catalysts and Strategic Insights
Tune into this episode as we dive into the short-term catalysts and strategic insights shaping the cryptocurrency landscape. Our expert panel, featuring David, Sarah, andGeorg unpacks everything from market overhangs to macroeconomic events, providing a comprehensive analysis of the current state of the crypto world.

1:45 Key Market Catalysts
- **Overhang Influences:** Explore significant overhangs affecting the market such as the news around Mt. Gox and the German government BTC holdings, including the implications of potential Mt. Gox distribution timelines.
7:45 **Deleveraging Dynamics:** 
Sarah provides an in-depth look at the current state of deleveraging across various client types, including insights into orderly margin calls during the recent volatility. Sarah also provides an overview of the portfolio margin system at Coinbase.**FTX Claims and Recovery:**
16:20 **FTX Timeline:** 
Georg discusses the timeline for FTX claims and assesses the potential positive outcomes for the market as these claims progress.
18:26 **Macro Economic Trends:**
- **Busy Economic Calendar:** David highlights key recent and upcoming macroeconomic events, including last week's non-farm payroll data, this week's CPI, and insights from multiple Federal Reserve members' speeches.
20:24 **Political and Regulatory Impact:**
- **Political and Legal Considerations:** David continues, delving into the latest political updates that could influence the crypto industry and examines how the Chevron deference might impact rule-making in this space.**Market Pressures and Predictions:**
23:34 **Token Unlocks:** 
Georg analyzes the current pressure on the market due to token unlocks and discusses the implications of these events on market dynamics.
26:00 **BTC Supercycle Discussion:** 
Georg and David follow up revisiting the concept of a Bitcoin supercycle and its potential impacts on the broader market.
30:10 Monthly Outlook - Advanced Predictive Analysis:**
- **Machine Learning Insights:**
 David wraps up with his monthly outlook, discussing what machine learning models are predicting about future crypto market movements, offering a unique analytical perspective to our listeners.

This episode is packed with critical insights and analysis, perfect for anyone interested in understanding the intricate details and broader trends affecting the cryptocurrency market today. Whether you're an investor, trader, or simply crypto-curious, these discussions will provide valuable insights into the strategic movements shaping the future of digital assets.
**Subscribe to stay updated:** Don’t miss our deep dives into cryptocurrency trends, market dynamics, and pivotal developments that influence investment and regulatory frameworks around the globe.

Host: Ben Floyd, Head of Execution Services

Panelists:
David Duong, Head of Institutional Research
Sarah Williamson, Head of Prime Financing Trading
Georg Toropov, Senior CES Trader

This week, we discuss the recent market volatility and price drops associated with the long-awaited liquidation of Mt Gox assets, along with some bitcoin selling by the German government. Our expert panelists Greg Sutton (senior CES trader) and David Han (research analyst) also analyze spot ETH ETF expectations and the potential impact of a launch in early July, given the current low liquidity conditions. Note that while July tends to be a slower month, historically we have seen that it brings positive seasonality trends, at least for bitcoin.

The panelists also touched on the political situation with the US presidential debate taking place on June 27 and the Supreme Court potentially overturning Chevron Deference. Meanwhile, technical updates on Solana (including Blinks, ZK Compression and Magic Blocks) are focused on improving the user experience, while the outperformance of TON has been driven by integration within the Telegram platform demonstrating a shift toward user acquisition over technical debates.Overall the discussion cuts through the noise of macro factors, regulatory developments, and innovation across crypto markets to discuss the implications for institutional investors.

1:10 Mt. Gox distributions
1:55 Perp funding rates & futures markets
6:45 German government sales
9:28 ETH ETF update
13:00 BTC ETF flows
14:30 Election insights
16:00 Token unlocks
20:40 TON update and Telegram integration
24:40 Solana technical updates
28:45 Seasonal BTC trends

Host: David Duong, Head of Institutional Research

Panelists:
Gregory Sutton, Senior CES Trader
David Han, Research Analyst

**Subscribe to stay updated** with our deep dives into cryptocurrency trends, market dynamics, and the pivotal developments influencing investment and regulatory frameworks around the globe.