Chuck gets into crypto

Good morning. A new crypto ETF is being launched from one of the country's largest financial institutions, Aave gets the greenlight to launch their GHO stablecoin, and one exchange is struggling to stay afloat. All that and more today!

Market Update (as of 8:17am ET):

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Top 5:

1. First Charles Schwab crypto ETF set to launch. While the SEC's foot-dragging has prevented a spot-bitcoin ETF, it has not stopped investment firms from launching crypto related products into the market. Charles Schwab will launch its first crypto ETF this week called the Schwab Crypto Thematic ETF (STCE) that tracks "companies enabling the use of digital assets to buy or sell goods and services, as well as those developing blockchain applications." While Schwab isn't the first crypto-ETF product in the market, they will be one of the cheapest undercutting rivals BlackRock and Invesco with an expense ratio of 30 bps.

2. Aave DAO approves creating GHO stablecoin. The open source liquidity protocol, Aave, will begin creation of a new stablecoin after an overwhelming vote in favor of the proposal. The new token will be called GHO and will be backed by collateral consisting of other cryptocurrencies. To mint GHO users will deposit tokens accepted by Aave and will still receive interest on their underlying collateral. Interest payments on GHO loans will flow back to the Aave DAO and repaid or liquidated GHO will be burned. The development and implementation timeline for GHO has yet to be announced.

3. Synapse Chain eyeing bridgeless asset swaps. Crypto bridges have not had a great year. Hacks targeting cross-chain bridges have stolen almost $2 billion from protocols, but Synapse Chain is proposing a solution...get rid of bridges altogether. In a blog post last week Synapses announced their "single execution environment" that is built on Ethereum, but allegedly compatible with any blockchain. The protocol will use optimistic proofs to verify cross chain transactions and to eliminate the need for crypto bridges. The Synapse Chain is expected to go live on a public testnet in the coming weeks.

4. CoinFLEX says it has laid off staffers to cut costs by 50-60%. The exchange, which halted withdrawals last month, has now cut a significant portion of staff in order to cut costs and continue operations. In addition to cutting costs, CoinFLEX is simultaneously pursuing recovery of $84 million in funds that were loaned out to a client and is issuing a token, Recovery Value USD (rvUSD), that promises 20% annual returns. The client is believed to be early bitcoin investor Roger Ver and the new token is believed to be garbage.

5. Pro-Russia groups raise $2M in bitcoin, ether to fund war. This story is a good reminder that (sufficiently decentralized) crypto has no political allegiance. According to research from Chainalysis more than 54 pro-Russian volunteer groups have raised around $2.2 million in cryptocurrency donations. Bitcoin ($1.45) and ether (590K) make up the lion's share of these donations. One group receiving donations, Project Terricon, states on their website that crypto donations are being sourced in order to avoid international sanctions. The silver lining - $2.2 million is only a small fraction of the tens of millions of dollars donated to support Ukraine.

Updates and other stories:
- Top Hong Kong university to launch virtual campus in the metaverse...Read More
- Dixon takes over Katie Haun's board seat at OpenSea...Read More
- ApeCoin DAO to fund Bored Ape news site for $150,000...Read More

Top Sharers of the Crypto Top 5:
1. Donna Y. - Nashville, TN
2. Jake Y. - Greenville, SC
3. Forrest H. - Evansville, IN

External Resources:
1. Cryptopedia from Gemini - if you see a word, acronym, or phrase in this newsletter that you don't understand, there's a good chance you can find an explanation here
2. Crypto Explainer+ - intro level courses on Bitcoin, Ethereum, decentralized finance, NFTs, and more
3. Crypto Jobs! - looking for a new job? Check out this page from Anthony Pompliano with hundreds, if not thousands of listings

Disclaimer: The information contained in this newsletter shall not be understood or construed as financial advice. I am not an attorney, accountant, or financial advisor, nor am I holding myself out to be, and the information provided is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation.