From Nasdaq Global Indexes:

Coinbase Global shares surged to a two-year high after the crypto exchange posted its first quarterly profit since 2021, driven by a surge in trading volume ahead of the approval of spot bitcoin ETFs. The stock jumped 14% to $189.28, adding over $5 billion to the company’s market value.
Coinbase benefited from increased trading fees due to investor interest in popular crypto tokens like bitcoin, rising since the second half of 2023 in anticipation of approval for spot bitcoin ETFs. There were worries that ETFs might cannibalize Coinbase’s fees, but analysts at Canaccord Genuity believe the injection of ETFs into the market will drive higher overall spot prices and trading volumes, benefiting Coinbase.
Although there are concerns about a potential loss of trading volume for Coinbase, the exchange is the custodian partner for eight of the 11 approved ETFs, reinforcing its position in the market. Coinbase reported a profit of $1.04 per share for the fourth quarter, compared with a loss of $2.46 a year earlier. The company generated transaction revenue of $320 million in the first quarter as of Feb. 13, exceeding analysts’ expectations for the entire three-month period. Analysts are closely monitoring the impact of ETFs on Coinbase’s trading volume. JPMorgan analysts believe a potential loss of trading volume is still possible for Coinbase. Overall, Coinbase’s solid financial performance has boosted investor confidence and reaffirms its position as a key player in the cryptocurrency market.
These developments reflect Coinbase’s increasing prominence in the cryptocurrency market and demonstrate the strength of its business in the face of evolving market dynamics and competition from ETFs. As the company continues to navigate these changes, it will be important to assess the long-term implications of ETFs on Coinbase’s trading volume and overall financial performance going forward.



Read more: Coinbase shares near two-year high as ETF euphoria boosts trading volume