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Post: Coinbase Stock Soars as JPMorgan Upgrades Rating and Bitcoin ETFs Drive Growth

Coinbase Stock Soars as JPMorgan Upgrades Rating and Bitcoin ETFs Drive Growth

Key Points:

  • Coinbase’s stock rose ahead of its earnings report.
  • JPMorgan upgraded Coinbase’s stock rating from underweight to neutral.
  • The upgrade was due to the positive impact of Bitcoin exchange-traded funds (ETFs) on crypto markets.
  • Coinbase’s custody arm has partnered with asset managers that launched Bitcoin ETFs.
  • The ETFs are expected to generate significant fees for Coinbase.

Elaborate With Insight:

Coinbase’s stock experienced a 6% increase in trading after JPMorgan analyst Kenneth Worthington upgraded its rating from underweight to neutral. The upgrade was influenced by the positive impact of Bitcoin ETFs on the crypto markets. Worthington noted that Bitcoin ETFs had surpassed expectations, amassing over $10 billion in assets under management within their first month of trading. Coinbase’s custody arm has partnered with many asset managers that launched Bitcoin ETFs in January, and the company is expected to earn between $25 and $30 million in fees from these products.

Hot Take:

The rating upgrade by JPMorgan and the positive predictions about the earnings from Bitcoin ETFs have contributed to investor optimism surrounding Coinbase. Despite potential unprofitability and legal challenges that Coinbase may face in the future, the market continues to respond positively to the company’s prospects. This highlights the growing interest and acceptance of cryptocurrencies and related investment vehicles in the traditional finance world.

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