A question that's been circulating like FUD (fear, uncertainty, and doubt) in the crypto space!

As a Bitcoin enthusiast, I'll break down the Coinbase conundrum for you:

**The Short Answer:** When you buy Bitcoin on Coinbase, the funds don't directly go into your wallet as #BTC. Instead, they're settled in US Dollars.

**Here's what happens:**

1. **Buyer's Payment**: When you purchase Bitcoin on Coinbase, the payment is made in USD.

2. **Exchange Rate**: The exchange rate between USD and BTC is determined by market forces (i.e., supply and demand).

3. **USD Deposit**: Coinbase deposits your USD payment into a holding account, which is typically an over-the-counter (OTC) broker or a US bank.

4. **FX Conversion**: When the price of Bitcoin fluctuates, Coinbase converts the USD deposit to BTC at the current market rate.

5. **Wallet Transfer**: The converted BTC is then transferred from the exchange's holding account to your own wallet.

Now, about Ethereum:

**The Connection?**

While Coinbase primarily focuses on Bitcoin and a few other cryptocurrencies, they do support Ethereum trading. However, when you buy or sell Ethereum on Coinbase, the funds are also settled in USD.

However, it's worth noting that some crypto exchanges, like Kraken or Huobi, might settle trades directly in #ETH (Ethereum) or use different fiat currencies.

**Where Does the Business Receive Bitcoin?**

Coinbase receives BTC as revenue from various sources:

1. **Trading Fees**: When you buy or sell cryptocurrencies on Coinbase, they charge trading fees.

2. **Deposit Fees**: They also collect deposit fees for receiving and processing incoming funds.

3. **Premiums**: As a liquidity provider, Coinbase earns premiums by buying and selling cryptocurrencies at favorable rates.

So, while the exchange takes place in USD, the underlying assets are indeed Bitcoin (BTC), Ethereum (ETH), and others.

Hope that clarifies things!