As a crypto investor with some experience under my belt, I’ve seen Coinbase’s meteoric rise this year. The company’s selection as custodian for Bitcoin ETFs by major players like BlackRock gave it an edge in the US market, leading to impressive revenue growth and share price surges.


This year, Coinbase has emerged as a key figure in the US crypto scene, with several ETF providers such as BlackRock designating it as the custodian for their Bitcoin exchange-traded funds (ETFs). In simpler terms, Coinbase has gained significant importance in the US market for cryptocurrencies, as many ETF providers like BlackRock have trusted it to secure their Bitcoin ETF investments.

The collective surge in the market caused a significant rise in COIN’s share price, pushing it above $250 early this year. Yet, unexpectedly harsh selling occurred on Thursday, potentially as a result of intensifying competition within its domestic industry.

As a financial analyst, I’ve observed that the Bitcoin Exchange-Traded Fund (ETF) custodian market has largely been dominated by the company led by Brian Armstrong due to its status as one of the publicly-traded cryptocurrency exchanges based in the United States.

During the initial three months of 2024, the launch of the ETFs brought significant gains to the company. Consequently, its Q1 sales report surpassed predictions, recording an impressive increase of 72% in revenue.

As an analyst, I’d observe that the surging crypto market significantly influenced Coinbase’s share price. Initially priced around $156 at the beginning of the year, it reached a multi-month high of approximately $280 in late March, capitalizing on the broader cryptocurrency market rebound and Bitcoin’s new all-time high.

I’ve been following the COIN stock performance closely, and up until last month, it had been holding steady above the $200 mark despite the market-wide downturn in April and May. However, my analysis took a turn yesterday when the shares experienced a significant decline of 9.43%, bringing the price down from $215 to $199.

A more likely explanation for this isn’t connected to market fluctuations, as Bitcoin had already gained significantly, reaching a 3-week peak above $66,500. Instead, potential competition in the US spot markets could be the cause.

CME Group, renowned for its role in Bitcoin and Ethereum futures trading, unveiled preliminary plans to offer spot bitcoin transactions. As a seasoned player straddling both traditional finance and cryptocurrency markets, CME’s entry into this arena could potentially erode market dominance held by industry giants like Coinbase and Binance.

As a crypto investor following the market closely, I’ve noticed that Cathie Wood’s Ark Invest has been steadily selling off its COIN shares over the past few weeks. This selling action could potentially intensify the downward pressure on the price of COIN.

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2024-05-17 09:38