Coinbase Acquires Deribit for $2.9B

Crypto VC Q1'25 Activity | Goldman -> Largest IBIT Holder

Marco Manoppo & Karon Pangestu
May 12, 2025

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Good Morning.

The crypto market is up as the US and China reduced tensions around the tariff war. Both countries announced a deal to cut reciprocal tariffs for 90 days. This might be the start to the risk-on environment that asset managers have been looking forward to.

In Today's Email:

What Matters: Coinbase Acquires Deribit for $2.9B 💰️
Product: Coinbase 24/7 Bitcoin and Ethereum Futures Trading 🕛️
Charts: Crypto VC Activity, IBIT & Goldman Sachs 📈

Check out our latest podcast episode with DefiApp!

Narratives: Slowly looking into the trenches and BERA/INIT farming.

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WHAT MATTERS

Coinbase Acquires Deribit for $2.9B

State of play: Coinbase is acquiring Deribit, one of the largest crypto options exchanges, in a $2.9B deal composed of $700M in cash and 11M shares of Coinbase Class A stock.

The move gives Coinbase a stronger foothold in non-US markets, especially Asia and Europe, where demand for leveraged and options trading is higher.
This strategic acquisition expands Coinbase’s product offering by adding crypto options, widely used for hedging, alongside its existing futures products.
Analysts see this as a significant step in positioning Coinbase for growth, particularly if US regulations evolve to permit domestic options trading.

What’s next: The deal reflects a broader trend of consolidation in the crypto space, with Ripple and Kraken also recently pursuing large acquisitions.

For builders and investors: Onchain options is one of those DeFi areas that is a matter of “when”, not “if” it happen.

One thing we can learn from Ethena is that the same idea is worth re-trying especially as the infrastructure and capital market dynamics matured in crypto.

Take a peek at our referral reward at the bottom of this issue. Share this newsletter and receive our list of 500 crypto VC individuals 👇

PRODUCT OF THE WEEK

Coinbase 24/7 BTC and ETH Futures Trading

24/7 trading for futures is here in the US.
Trade Bitcoin and Ethereum futures on your time — any hour, any day. The market doesn’t sleep, and now, neither do your opportunities.
Next up: Perpetual futures. Stay tuned.
— Coinbase Futures (@cbFutures)
2:36 PM • May 9, 2025

Coinbase has rolled out 24/7 Bitcoin and Ethereum futures trading through its CFTC-regulated arm, Coinbase Derivatives, just one day after announcing its $2.9B acquisition of Deribit.

The new service offers retail and institutional traders round-the-clock access, including weekends, with clearing handled by Nodal Clear.
This move positions Coinbase to better compete in the booming crypto derivatives market, which saw $1.9T in Bitcoin futures volume in April alone.
Coinbase also plans to introduce perpetual-style futures in the US.

Other cool products:

ENSO, a connectivity layer of crypto.
Superstate, a blockchain-based government bond fund.
Newton, a chain unification network by Magic Labs and Polygon Labs.
Alkimiya, a permissionless, open-source protocol for consensus capmar.
Yala, a platform that connects Bitcoin liquidity with a meta yield stablecoin.

CHARTS OF THE WEEK

Goldman Sachs Becomes Largest IBIT Holder

Source: CryptoRank

State of play: Goldman Sachs increased its holdings of BlackRock's spot Bitcoin ETF (IBIT) by 28% in Q1 2025, becoming the fund's largest known holder with 30.8M shares worth around $1.4B.

IBIT has recorded net inflows for 20 consecutive trading days, pulling in over $5.1B, marking the longest inflow streak of any spot Bitcoin ETF this year.
This surge aligns with growing institutional interest, including Goldman’s positions in other Bitcoin ETFs like FBTC.
The move follows Goldman's increased focus on crypto, with regulatory clarity around stablecoins seen as a potential catalyst for further crypto adoption.

Our take: Still bearish anon?

Crypto VC Activity Rebounds in Q1 2025

Source: Galaxy

State of play: Crypto and blockchain venture capital activity rose in Q1 2025, with $4.9B invested across 446 deals, a 40% increase from the previous quarter.

However, over 40% of the total came from a single $2B investment into Binance by UAE-backed MGX.
Without it, VC activity would’ve dropped to $2.8B, near 2024 lows.
Later-stage deals dominated for the first time since 2020, reflecting a maturing industry, while early-stage activity and pre-seed deals continued to decline.
The US led in deal count, and Malta topped capital invested due to the Binance raise.
Fundraising also improved slightly with $1.9B raised across 18 new crypto funds, though investor sentiment remains cautious amid macroeconomic headwinds.

Our take: The bottom for venture deals might be in — however, underperformance amongst crypto VC is still a very much real thing.

QUICK BITES

Coinbase acquires Deribit for $2.9B.
Goldman Sachs boosts IBIT holdings by 28%.
Coinbase misses Q1 earnings and revenue estimates.
Uniswap becomes first DEX to hit $3T in all-time volume.
BlackRock meets with the SEC to discuss staking & options.
Coinbase unveils 24/7 Bitcoin and Ethereum futures trading.
Feds deny late disclosure of evidence in Samourai Wallet case.
Lido lost $1.4M in an attack that sparked an emergency DAO vote.
Democratic Senators propose ban on crypto promotion by Trump.
DeFi lending TVL is outpacing DEXs due to more sustainable yield.
German Authorities seize $38M worth of crypto from eXch exchange.
Democratic Senators propose a ban on crypto promotion by Trump and senior government officials.

NOTEWORTHY READS & MEME

Josh Swihart’s read on the zCash update.
katexbt’s read on the Q2 2025 farming guide.
Taiki Maeda’s read on MKR/SKY bull case Q2 2025 update.

When people say things like “defi summer was way more fun” or “early crypto was way more interesting” what they mean is that they made more money back then. And they are probably making less now. That’s totally fine, but that’s what they mean. It’s more fun when you make money
— Gwart (@GwartyGwart)
7:01 PM • May 6, 2025

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.