From Nasdaq, Inc.:

Coinbase Global shares increased by 12% before the trading bell on Friday due to strong trading volumes from optimism around spot bitcoin ETFs, marking their first profit since 2021. The stock was trading at $186.06, potentially reaching its highest point of the year, adding nearly $5 billion to the company’s market value.

Investor interest in popular crypto tokens spiked in anticipation of SEC’s approval for spot bitcoin ETFs, leading to a 57% rally in bitcoin prices. This drove Coinbase’s trading fees. Despite concerns about ETFs cannibalizing fees, analysts predict that the ETFs will fuel higher overall spot prices and trading volumes, boosting Coinbase’s business.

The approval of the ETFs did not deter Coinbase’s performance. The company generated transaction revenue of $320 million in the first quarter, surpassing analyst expectations. However, some analysts are cautious about Coinbase’s ability to sustain elevated fee rates in the long term.

Coinbase reported a profit of $1.04 per share for the fourth quarter, a significant improvement from the previous year. The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.



Read more: Coinbase shares surge after bitcoin ETF euphoria helps return to profitability