What The BTC ETFs Mean For Solana, Solana Next For Aave & More

Welcome back!

This is J264G and this week I’ve got these titbits for you:

• Ethereum Alignment 😉: Aave considers expanding to Solana. 

• Crypto, Effortlessly: Meso offers zero-fee on-ramps to Solana.

• Banking Jitters: Solana could disrupt wire transfers.

BTC spot ETFs are live — hello crypto age!

Not everyone is aboard just yet. They will be soon, though.

After all, Vanguard, Citi, Merrill, UBS & Co. are in the business of trading regulated financial products — period.

If you're pondering over the wider implications of the BTC spot ETFs, read on!

Click on any underlined heading/hyperlink to learn more.

Spotlight

ETF = Enjoy The Fanfare

The introduction of BTC spot ETFs has finally brought crypto into the mainstream — we've entered a new era.

Yet, I can't help but think that BTC spot ETFs depict a double-edged sword.

On the one hand, we now have systemically important financial institutions carrying our flag, making it increasingly difficult and undesirable for governments to take potshots at our industry. On the other hand, however, BlackRock, Fidelity & Co. have now introduced new crypto on-ramps — upstaging self custody.

When it comes to centralised exchanges such as Coinbase or Kraken, we’ve long argued: “Not your keys, not your coins”. That’s because the problem with CEXs is that your digital assets are custodied, meaning that a CEX can — for example — freeze all your assets at any time if it feels the need to do so. 

If you thought CEXs pose a “centralisation risk”, this will be even more true with respect to asset managers such as BlackRock, Fidelity & Co.

Have we lost the plot?

Satoshi's vision primarily revolves around the creation of a decentralised currency that powers a peer-to-peer electronic cash system — ultimately bringing about self-sovereignty. 

As we all know, Satoshi wanted to help curtail the perceived issues with traditional financial systems, including the centralisation of power and control, inefficiencies, and the risks of censorship.

Centralisation of power and control … isn't that exactly what BlackRock, Fidelity & Co. embody?

Think about it: Who owns the most Bitcoins today? Simple: Countries such as El Salvador, pension funds and sovereign wealth funds in the Middle East, companies such as MicroStrategy, and … BlackRock, Fidelity & Co.

We, crypto natives and the cypherpunk community, are small fish in this regard.

So, do governments and large financial institutions pose a concentration risk to the very vision Satoshi put forward?

Maybe. 

But I would argue that we can have our cake and eat it too. 

How?

Well, the BTC spot ETFs are only the first step — ETH spot ETFs will follow suit. Consequently, the general public will increasingly feel more comfortable with crypto and the myriad of benefits it offers as time goes on. 

The second order effects?

An influx of people who are keen to learn more about crypto and, subsequently, self custody.

Therefore, we don't need to do any mental gymnastics and can full-heartedly celebrate the BTC spot ETFs as the momentous achievement that they are — a win-win for our industry. 

However, now is the time to go full out and craft the resources that new crypto users and enthusiasts need to get onboarded securely. 

That remains my vision and mission with The Sleuth — day in, day out 🫡

Numbers Of The Week

News Bites

Trading Bundles: Cube has been going from strength to strength. One of the most interesting features of the exchange are “bundles”, which allow users to trade multiple assets in one swift transaction.

Crypto, Effortlessly: Meso allows users to transfer money between wallets and banks — fast and safe. From now until April, there will be zero on-ramp fees to Solana for US citizens!

Another One (*cue: DJ Khaled*): Aave — the largest borrow/lend protocol with a TVL of $7.50 billion across 10 blockchains — is considering expanding to Solana. 

Banking Jitters: In 2021, $4.6 billion in fees were spent on US wire transfers. On Solana, this would have been around $100,000 🤯

Liquidity Bridging: LI.FI just released its latest report, highlighting how messaging protocols and liquidity networks can onboard new users and liquidity to Solana. 

SVM Revamps: If you'd like to dive into all things Solana Virtual Machine (SVM), make sure to read Anatoly's latest blog posts.

Caught In 4K

Weekly Take

Keks & Giggles

And that's a wrap!

If you'd like to reach me, respond to this newsletter or reach out to me on X.

Talk soon!

J264G

_{DISCLAIMER
None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research. Lastly, please be advised that we discuss products and services from our partners from which our team members may hold tokens/equity.}