2024-01-10 19:06:53 ET
Coinbase Global Inc (NASDAQ: COIN) ended 2023 with a near 400% gain but the new year may be significantly more challenging for it now that the Securities & Exchange Commission has approved the Spot Bitcoin ETFs.
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=oembedJPMorgan 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.
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