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Investing.com - Erste Group downgraded Coinbase Global Inc. (NASDAQ:COIN) from Buy to Hold on Thursday, citing concerns about the impact of Bitcoin ETFs on the cryptocurrency exchange’s revenue streams. The downgrade comes as Coinbase shares have fallen 9.13% over the past week, with the stock currently trading at $257.29.
The research firm noted that while Coinbase remains one of the leading platforms for cryptocurrency trading serving both retail and institutional clients, its business model faces new challenges.
Erste Group highlighted that Coinbase has benefited from the increasing adoption of cryptocurrencies across the market, positioning it as a major player in the digital asset space.
The firm expressed concern that the growing availability of low-cost Bitcoin ETFs threatens a significant revenue source for Coinbase, as these products compete with direct cryptocurrency purchases on exchanges.
According to Erste Group, Coinbase’s "lucrative private customer revenues will decline proportionately and be replaced by business with ETF providers with very low margins," a shift that will "significantly reduce profitability" for the company.
In other recent news, Coinbase Global Inc. reported solid third-quarter earnings for 2025, with notable improvement in institutional trading revenue. This performance was bolstered by the acquisition and integration of Deribit, as highlighted by Mizuho, which subsequently raised its price target for Coinbase to $320, maintaining a Neutral rating. Additionally, Coinbase is in late-stage discussions to acquire stablecoin infrastructure startup BVNK for approximately $2 billion, pending due diligence. In another development, Monness Crespi Hardt upgraded Coinbase’s stock rating from Neutral to Buy, citing potential growth in stablecoin utility, particularly in cross-border B2B payments. Coinbase also announced plans to launch a new platform for pre-listing token sales, allowing investors to purchase digital tokens before they are listed on the exchange. This move is expected to host one token sale monthly and utilizes an algorithm for token allocation. These developments come amid a broader downturn in cryptocurrency-related stocks, as Bitcoin fell below the $100,000 mark.
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