Cryptocurrency trading platform Coinbase is experiencing a remarkable stock renaissance, with shares up over 400% since the start of the year. The company’s stock price reached a 20-month high this week, surpassing both Bitcoin and Ethereum in terms of returns. As the yearly close approaches, traders are optimistic about further upside for Coinbase, with the potential approval of the first U.S. Bitcoin spot price exchange-traded fund (ETF) on the horizon.
Despite this positive outlook, some investors have reduced their exposure to Coinbase, including investment giant ARK Invest, which cut its holdings in the company’s stock by around 11% in December alone. The company’s CEO, Brian Armstrong, remains confident about the future of cryptocurrencies, stating that being anti-crypto is “bad politics” in Washington, D.C.
Coinbase Eyes a Strong Future Despite SEC Obstacles
Armstrong also highlighted current hurdles facing Coinbase, including a rejection of a rule-making collaboration from the Securities and Exchange Commission (SEC), which is responsible for approving Bitcoin ETFs. However, Armstrong emphasized Coinbase’s role in all aspects of the cryptocurrency value chain and expressed his belief that the future of cryptocurrencies is bright.
Traders Eye Further Upside for Coinbase
As the yearly close approaches, traders are optimistic about the further upside for Coinbase, with the potential approval of the first U.S. Bitcoin spot price exchange-traded fund (ETF) on the horizon. The ETF would provide investors with a regulated and convenient way to access Bitcoin prices through traditional brokerage accounts, potentially driving significant demand for Coinbase’s trading services.
As markets count down to the potential approval of a Bitcoin spot price ETF, it remains to be seen whether Coinbase’s stock price will continue to soar or face a correction. Below are three key points to consider
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