GLD - Coinbase Downgraded To 'Underweight:' JPMorgan Analysts Blame Regulatory Risks ETF Letdown | Benzinga
JPMorgan downgraded cryptocurrency exchange Coinbase (NASDAQ: COIN) to 'Underweight' while maintaining an $80 price target.
The revised stance follows an "underwhelming" start to Spot Bitcoin ETF trading.
What Happened: JPMorgan analysts, led by Kenneth B. Worthington, "see Coinbase as both a leading driver and beneficiary of the cryptocurrency economy."
A lackluster entry of Bitcoin ETFs into the market, however, suggests potential headwinds for the company.
"Coinbase is making investments in the buildout of its derivative platform and Layer-2 Base chain," states JPMorgan, acknowledging the company's initiatives to diversify and innovate.
The report also juxtaposes these positives with the reality of a "highly-competitive and costly" international landscape and Binance as the main competitor.
It also underscores the Bitcoin ETFs as ...