JPMorgan analyst expresses skepticism regarding Coinbase's portrayal of benefits from Bitcoin ETF market participation
JPMorgan analyst Kenneth Worthington has expressed skepticism about Coinbase's depiction of the benefits it claims to derive from its participation in the U.S. spot Bitcoin ETF market. Worthington has pointed out the company's failure to provide detailed insights into the financial implications of its involvement in offering custodial services for eight of the ten bitcoin ETFs. This lack of clarity raises doubts about the actual impact of these ETFs on Coinbase's revenue, particularly considering the potential loss of volume in the spot markets.
Mixed feelings despite Coinbase surpassing expectations
Although Coinbase exceeded expectations for its fourth-quarter earnings, Worthington maintains a cautious stance. He holds a neutral position with a 12-month price target of $95 for the stock.
Analyst comment
Negative news. Market may be impacted as investors become cautious and skeptical about Coinbase’s involvement in the Bitcoin ETF market. Lack of clarity on financial implications and potential loss of volume in spot markets raises doubts about revenue. Analyst holds a neutral stance with a price target of $95 for the stock.
