2024-02-06 18:55:16
© Mundo Crypto PR
Investing.com – Mizuho Securities reaffirmed its sell recommendation and $60 price target on shares of Coinbase (NASDAQ:), the largest U.S. cryptocurrency trading platform, in a report released on Monday . The Japanese brokerage questioned whether the bitcoin index fund (ETF), which began trading in October 2023, is hurting Coinbase’s performance.
According to Mizuho analysts, Coinbase expected the increase in assets under management (AUM) of bitcoin ETFs to drive demand for its spot trading services. However, what was observed was the opposite: ETFs that use Coinbase as a custodian had more outflows than inflows (-$6 billion in GBTC since January 11, against +$4.9 billion in other seven ETFs held by Coinbase).
Additionally, spot trading volumes on Coinbase fell following the ETF’s launch ($1.9 billion in average daily volume since Jan. 13, versus $2.5 billion in the previous 30 days). For Mizuho, this indicates that the bitcoin ETF is competing with Coinbase for the cryptocurrency investor market.
The exchange also pointed out that there is a big difference between the fees Coinbase charges retail clients and those it receives for custody of ETFs. This means the growth of ETFs could reduce Coinbase’s margins and put pressure on share prices. Mizuho analysts stated that this scenario appears to be materializing with Coinbase’s recent price drops.
#Mizuho #Sees #Bitcoin #ETF #Threat #Coinbase #Investing.com