SEC approves Bitcoin ETFs: here’s what it means for Coinbase

January 11, 2024 11:06 AM AEDT | By Invezz

SEC approves Bitcoin ETFs: here’s what it means for Coinbase — Image source: Invezz

Mizuho shares its view on Coinbase stock

Shares of the crypto company are up 6.0% in extended hours following the SEC news on Wednesday.

Still, analysts at Mizuho told clients in a research note today that an exchange-traded fund could eat into the volume on Coinbase Global that brought in 46% of its net revenue from transactions in its latest reported quarter.

ETFs are expected to be managing some $300 billion worth of Bitcoin or about 10% of its global supply in the coming years.

That’s part of the reason why Mizuho is super bearish on Coinbase stock.

Watch here: https://www.youtube.com/embed/v5ETbO7kwO4?feature=oembed

JPMorgan analysts hold a similar opinion

Mizuho analysts currently have a price target of $54 on Coinbase Global which suggests a 65% downside from here. Their research note reads:

With the hype around Bitcoin ETFs likely to reach a climax in the coming weeks, Coinbase bulls could experience a rough awakening when they realise how minimal the revenue impact is.

JPMorgan also expects the Spot Bitcoin ETFs to weigh on account growth at Coinbase as a bunch of new investors may choose an exchange-traded fund over a crypto exchange to gain exposure to BTC.

2024 is off to a great start with the Bitcoin #ETF approval! 🫡 pic.twitter.com/cDeOTHCYeQ
— Cointelegraph (@Cointelegraph) January 10, 2024

Coinbase did, however, said in a recent statement to CNBC that it will also provide services like agency trading and financing to asset managers awaiting approval for a Bitcoin ETF to make money.

The post SEC approves Bitcoin ETFs: here’s what it means for Coinbase appeared first on Invezz

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.