The fact Coinbase has been allowed to custody so many Bitcoin for the ETFs is a feature for a corrupt system and very much a major flaw for us. Future attack vector incoming
Discussion
Single point of failure.
This is not decentralised
Retail has something like $40 Billion of IOUs sitting on Coinbase. Total insurance coverage of $400 Million for those funds.
I haven’t looked into it since the ETF launch but the numbers for the company are fundamentally terrible. There was a point late last year where their stock-based comp was near 70% of total revenue.
And it's weird. Is it the XAPO system of cold storage?