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Crypto Companies: Coinbase and Robinhood Shares Fall Despite Spot Bitcoin ETF Approval! Coinbase and Robinhood exchanges faced an unexpected turn as they tried to calculate Bitcoin prices following the announced spot Bitcoin ETF. The company’s shares opened lower on Thursday.
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Coinbase shares fell by nearly 7%, followed by Robinhood, which fell by about 4%.
On Wednesday, the Securities and Exchange Commission approved rule changes that allow the launch of Bitcoin ETFs in the United States.
It has been long awaited by investors in the crypto space as it gives cryptocurrencies more credibility in an industry that has been called unstable.
In an interview that aired on Thursday, Coinbase CEO Brian Armstrong told CNBC’s Andrew Ross Sorkin:
“This is a monumental step for the crypto industry. There are 52 million Americans who have used crypto in the last decade, and I think they’ve been waiting for some sort of endorsement from the government and specifically from the SEC that this asset class is here to stay, and we finally got it.”
The emergence of the spot Bitcoin ETF raised concerns. It was predicted that it would put pressure on Coinbase as it provides investors with an easier way to invest in cryptocurrency.
JPMorgan analyst Kenneth Worthington said:
“We see that the impact of the Bitcoin ETF has both positive and risky elements for Coinbase, but given the appreciation of Coinbase’s stock price, we see that the risks are more important for shareholders. On the positive side, we see Coinbase as the preferred custodian for Bitcoin ETFs. Coinbase was hired as the custodian of 8 of the 11 Bitcoin ETFs approved by the SEC, in addition to surveillance sharing agreements.”
The analyst continued his sentences by saying that we knew that the approval of Bitcoin ETFs would be a potential loss for Coinbase. We think it will be a competitor to Coinbase if the Bitcoin ETF is particularly successful.”
2023 Earnings
In 2023, Coinbase has achieved an excellent 391.4% increase. Looking at Robinhood, it showed a 56% increase.