Public Key Weekly Summary
This week in the crypto world: Coinbase shows surprisingly strong Q3 results, BlackRock’s IBIT has taken a significant hit, and REX Shares launches an ETF targeting crypto stock volatility.
On Thursday, Coinbase reported third-quarter revenue around $1.9 billion, with trading revenue hitting $1 billion—both above expectations. This marks a noticeable recovery as spot trading volumes bounce back.
Additionally, the company indicated a solid fourth quarter ahead, with trading revenue reaching $385 million just in October. Beyond trading, factors like subscriptions, staking, and interest rates have contributed to its success. Interestingly, their Ethereum L2 platform, Base, is also turning a profit.
Coinbase, which trades under the ticker COIN on Nasdaq, saw a 4.65% increase in stock price on Friday. However, it should be noted that the stock is still down about 3% from the start of the week.
This earnings report reinforces the idea that both volatility and trading volume impact COIN’s returns, which can be quite challenging for traders.
To enhance its market offerings, CEO Brian Armstrong mentioned that Coinbase has expanded its assets significantly—from around 300 in the U.S. to more than 40,000, especially with the integration of DEX and future products.
There’s some chatter among industry insiders about the potential risks that increased accessibility might pose to the market.
Turning to BlackRock, the firm experienced substantial outflows from its iShares Bitcoin Trust (IBIT) after cryptocurrencies dipped. On Thursday, Bitcoin’s price fell below $110,000, contributing to BlackRock’s ETF category losing nearly half its funds for the day.
IBIT was responsible for about $290.8 million of those outflows, even as it represents a significant portion of their ETF offerings, with lifetime net inflows exceeding $88 billion. And while this week brought losses, the long-term narrative remains intact.
Meanwhile, REX Shares is gaining attention with its unique approach to ETFs. Their latest product focuses on volatility in the stock market, including crypto firms, aiming to turn that volatility into an advantage rather than a setback.
Trading on Nasdaq under the ticker ULTI, the REX IncomeMax Option Strategy ETF targets very volatile U.S. stocks, capturing various companies involved in the crypto space.
This ETF utilizes a dynamic options strategy to manage risk while seeking to deliver weekly income from price swings, showcasing Wall Street’s ongoing adaptation to crypto volatility.
For investors interested in a blend of crypto exposure and equity while favoring income generation, this ETF could be a promising option. It’s a clear signal that the financial world is continually innovating with crypto’s inherent volatility.
There are also notable developments with Core Scientific, a Bitcoin mining firm. They recently scrapped a significant merger with CoreWeave, which was valued at $9 billion.
Lastly, Western Union has been in the spotlight for trademarking “WUUSD.” Interestingly, this seemed to come right after announcing plans for a stablecoin ticker named USDPT, perhaps as a preventative measure against potential duplication by others.
