Bitcoin ETF may be a ‘limited’ benefit for Coinbase stock: Barclays

  • Mike Novogratz expects SEC to approve a Spot Bitcoin ETF this yr.
  • Barclays analyst doesn’t count on that to be a big benefit for Coinbase.
  • Coinbase inventory is presently down over 30% versus its year-to-date excessive.

Mike Novogratz – the Chief Government of Galaxy Funding Companions expects the Securities & Alternate Fee to approve a Spot Bitcoin ETF by the top of this yr.

Right here’s what Mike Novogratz mentioned at this time on CNBC

Final week, the U.S. regulator shunned interesting a court docket’s ruling that mentioned it didn’t have ample motive to dam Grayscale from changing its flagship belief to an exchange-traded fund.

Be aware that Galaxy itself has filed for a Spot Bitcoin ETF in collaboration with Invesco. On CNBC’s “Squawk Box”, Novogratz mentioned at this time:

Dialogue with SEC is heading in proper course. It’s now not speaking how Bitcoin works. It’s simply a recognised macro asset and that’s a big psychological shift.

The billionaire investor expects a optimistic information on the ETF entrance to steer the market larger. Nonetheless, Barclays is just not totally satisfied that it’ll be a materials catalyst for Coinbase World Inc.

Barclays analyst shares his view on Coinbase inventory

Analyst Benjamin Budish instructed shoppers in a analysis word at this time on Wednesday that approval of a Spot Bitcoin ETF will probably be a “limited” benefit for Coinbase.

It isn’t clear how profitable ETF launches would translate into a significant P&L benefit for Coinbase regardless of it being an integral service supplier.

He agreed that the Nasdaq-listed agency will function custodian for 4 BTC exchange-traded funds (no less than) however mentioned it’s unlikely to earn important custodial and prime brokerage charges.

Barclays has an “underweight” score on Coinbase inventory with a value goal of $70 that implies one other 6.0% draw back from right here. Earlier this week, Cathie Wood – the Founding father of Ark Make investments additionally took a optimistic tone on a Spot Bitcoin ETF approval.

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