Coinbase Will Benefit From Spot Bitcoin ETF Approval: Wedbush
Summary
The U.S. Securities and Exchange Commission's (SEC) approval of spot bitcoin exchange-traded funds (ETFs) is expected to benefit crypto exchange Coinbase, according to a report by investment firm Wedbush. The firm maintained its outperform rating on Coinbase and raised its price target on the stock to $180 from $110. Coinbase's future results are likely to benefit from the ETF approvals due to the company's dominant role in these ETFs and the potential to unlock institutional investors. Revenue generation will come from custodian fees and ancillary services. However, Mizuho Securities warned that the approval could lead to deeper cannibalization of high-margin spot bitcoin trading and share loss to brokers offering ETFs.
