Coinbase Shares Seen as Broad Investment in Crypto by Traditional Finance Firms
Summary:
Mitchell Askew from Blockware Solutions suggests that traditional financial firms may use Coinbase (COIN) shares as a broad-spectrum investment into the crypto sector. During a recent event, Matt Hougan from Bitwise lauded Coinbase's performance and anticipates it may exceed projected revenue growth in 2024. Despite some setbacks, including a lawsuit and a potential crackdown on cryptocurrency activity in the U.S., experts remain optimistic about Coinbase’s future.
Blockware Solutions' main analyst, Mitchell Askew, has stated that he believes that financial institutions might use Coinbase (COIN) shares as a broad investment into the cryptocurrency market. Speaking at a Dec. 21 X (previously Twitter) Spaces event hosted by Bitcoin enthusiast Anthony Pompliano, Askew described Coinbase as a secure and diverse investment option for newcomers in the crypto sector.
Several financial experts joined him during the X Spaces session, including Matt Hougan, the CIO of Bitwise, a cryptocurrency asset management firm. Hougan expressed his positive outlook on the future of Coinbase, praising its superior performance compared to other American financial service companies. He also speculated that Coinbase's revenue might surpass their expectations in 2024 as Bitwise's recent forecast outlined a projection of doubled revenues by that time.
Adding on to this discussion, cryptocurrency analyst Will Clemente highlighted that while Wall Street primarily considers Coinbase as an exchange, the company has successfully ventured into other areas, including stakeholding, becoming a Bitcoin ETF custodian, and acquiring a fraction of Circle. Additionally, Coinbase had rolled out Ethereum layer-2, also known as "Base," in August.
Despite these advancements, Coinbase is dealing with a major lawsuit from America's securities regulator. Furthermore, several U.S. senators are pushing for bills that would limit crypto activities in the country - a move could prove detrimental to Coinbase's operations.
Recently, "Base" also experienced some distressing events, including the Magnate finance rug-pull involving $6.5 million and a $865,000 scam on RockSwap.
Also noteworthy is the significant sale of 237,000 COIN shares by Cathie Wood's ARK Invest which amounted to over $331 million across three different funds recorded on Dec. 5. ARK's COIN holdings in the ARK Innovation (ARKK) ETF have declined about 11% in December based on data from ARK CEO Cathie Wood's official website.
Published At
12/22/2023 8:10:49 AM
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