San Anselmo, California – June 6: This photo illustration shows the Coinbase logo on a screen in San Anselmo, California on June 6, 2023. The Securities and Exchange Commission has filed a lawsuit against virtual currency exchange Coinbase, alleging that it violated securities laws by operating as an exchange, broker, and clearinghouse without registering with the Commission. (Photo illustration: Justin Sullivan/Getty Images)
Justin Sullivan | Getty Images
Shares of Coinbase and Robinhood fell on Thursday as traders weighed how the approval of Bitcoin exchange-traded funds in the United States would affect crypto trading platforms.
coinbase While the stock price fell 6.7%, robin hood It ended 3.5% lower.
Losses accelerated for both stocks as Bitcoin prices fell from their highs. The cryptocurrency topped $49,000 for the first time since December 2021, but has since fallen to around $46,000.
On Wednesday, the Securities and Exchange Commission approved rule changes that will allow the launch of Bitcoin ETFs in the United States. This news has been long awaited by investors in the cryptocurrency industry, as it is seen as providing further confidence to a previously volatile industry. asset class.
coin sways
“This is a monumental step for the crypto industry,” Coinbase CEO Brian Armstrong told CNBC’s Andrew Ross Sorkin in an interview aired Thursday. “I think 52 million Americans have used cryptocurrencies over the past 10 years, and they’ve been waiting for some sort of confirmation from the government, especially the SEC, that this asset class is here to stay. And finally they Understood.”
There are also concerns that the emergence of spot Bitcoin ETFs in the US could put pressure on Coinbase in the future as it provides investors with an easier way to invest in cryptocurrencies.
JP Morgan analyst Kenneth Worthington said, “We see the impact of the Bitcoin ETF as both positive and risky for Coinbase, but given the rise in Coinbase’s stock price, there are risks. “We believe that this is more important to shareholders.”
“On the positive side, we believe Coinbase is the custodian of choice for Bitcoin ETFs, and in addition to oversight and sharing agreements, we believe Coinbase is the custodian of eight of the 11 Bitcoin ETFs approved by the SEC. Coinbase is employed as Anne.” “Even if a Bitcoin ETF were to be particularly successful, we believe the approval of a Bitcoin ETF could be a potentially lose-lose situation for Coinbase, as we see it becoming a competitor to Coinbase. ”
Coinbase is coming off a monster year, rising 391.4% in 2023. Robinhood also soared more than 56% last year.
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