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Brian’s Big Bags


What is the dollar amount where the Banking Cartel starts asking tough questions like “Who’s holding the bag?” and ” Who’s holding our coins?” As we are near the approval of the ETF, I can’t help but wonder to myself “Who’s carrying the bags?”. And while everyone on Twitter seems to be ETF experts and are breaking news on punctuation changes to applications, Coinbase has quietly positioned themselves in perhaps one of the most important roles in the future of paper Bitcoin. Coinbase is now listed as custodian on 9 of the 12 Bitcoin Spot ETF applications. Read that again.

Bitcoin Spot ETF Custodian List

Source: Bloomberg Intelligence, SEC Filing

With their role in these ETFs all but across guaranteed for Coinbase, it makes you wonder what is happening behind the scenes. Less than 10 days ago, Coinbase made a remarkable change in leadership by nuking their custody CEO, Aaron Schnarch, and brought in 30 year Wall Street veteran Rick Schonberg1 to lead the business. So let me get this straight, two weeks before the ETF approval, Coinbase has 75% of the custodian roles in all US Spot Bitcoin ETF business locked down, and they nuke their Custody boss and replace him with the most on-brand guy possible. Call me crazy but this is how the NY Banking Cartel operates. You think outsiders are welcome? You think the NY Banking cartel will simply bend the knee to bay area grays2?

Besides the idea of some shady dealings with the NY Banking Cartel, the position Coinbase is in is worth some scrutiny, especially if you care3 about custodial risk. Custodial risk is associated with entrusting a third party, often known as a custodian, with the safekeeping and management of financial assets.

Custodial Risk. the risk associated with entrusting a third party, often known as a custodian, with the safekeeping and management of financial assets.

This risk can take various forms:

  1. Operational Risk: The risk of loss due to the custodian’s operational failures, such as administrative errors, technology failures, process breakdowns, and losing the keys.
  2. Fraud Risk: The risk that the custodian could engage in fraudulent activities, such as misappropriation of assets or manipulation of records.
  3. Credit Risk: The risk that the custodian might become insolvent or unable to fulfill its obligations, potentially leading to the loss of assets.
  4. Legal and Regulatory Risk: The risk of loss due to non-compliance with laws and regulations, which could result in fines, penalties, or legal actions.
  5. Counterparty Risk: In situations where the custodian enters into transactions with other parties on behalf of the client, there is a risk that the counterparty may default or fail to honor its obligations.
  6. Security Risk: The risk of theft or loss of assets due to poor security measures, both physical and digital.

As I look through this list I am putting a mental checkmark next to every line item as legitimate custodial risk since 75% of the Bitcoin ETFs are going through Coinbase’s hands. Now look, I am not writing this to be a concern troll. I am just saying that the change in leadership is very weird, and the concentration of funds into a single custodian is a major red flag. If anything this situation leads to a more probable 6102 Bitcoin scenario.

The developments surrounding Coinbase’s role as custodian for nine out of twelve Bitcoin Spot ETF applications raise significant concerns regarding custodial risk. With over 75% of the market share locked up under Coinbase’s control, investors should carefully consider the potential dangers associated with relying on a single entity for the storage and management of their paper bitcoins’ reserves. The convenience offered by centralized custody services may seem appealing, but the risks can’t be ignored. It’s crucial for individuals to do their own research and understand the implications of custodial arrangements before investing in any Bitcoin ETF. By doing so, they can make informed decisions and minimize exposure to threats posed by 6102 bitcoin, regulatory seizures, cyber attacks, and other unforeseen events. Ultimately, the ETF is going to be approved, things are going to get very weird, the NY Banking Cartel will sink their teeth into Bitcoin, and then there’s Brian’s Big Bags.


  1. This man’s resume is so on-brand for the role, just have a look if you like to schizo on these things. The point I am making is that they brought in a stud to do this job. ↩︎
  2. The term “grays” was coined (to my knowledge) by Balaji last year when he went on the epic 3 hour podcast rip with Marty, but the idea of a gray is that the country is divided into Blues and Reds as political tribes, but there is a third tribe which he calls the grays who have no allegiance to either party. Grays are capitalist builders who just want to build. ↩︎
  3. I don’t really care about this product as I am not a customer, I am just noticing the elephant in the room. Not your keys not your coins. ↩︎


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