Coinbase Downgraded to Underweight; Bitcoin ETF Catalyst May Disappoint: JPMorgan
Summary
JPMorgan downgraded U.S. exchange Coinbase to neutral, citing potential disappointment in 2024 due to the launch of spot bitcoin ETFs. The bank sees the approval of these ETFs as a catalyst that could deflate enthusiasm in the cryptocurrency market, leading to lower token prices and trading volume. The report also notes that Coinbase is expected to play similar roles if a spot ether ETF is approved. The price of bitcoin has already fallen below $40,000 since the approval of spot ETFs. FTX's bankruptcy estate selling $2 billion worth of the Grayscale Bitcoin Trust has added pressure to the digital asset.
