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

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coinbase stock price forecast barclays analyst

Mike Novogratz expects SEC to approve a Spot Bitcoin ETF this 12 months.
Barclays analyst doesn’t anticipate that to be a large benefit for Coinbase.
Coinbase inventory is at present down over 30% versus its year-to-date excessive.

Mike Novogratz – the Chief Executive of Galaxy Investment Partners expects the Securities & Exchange Commission to approve a Spot Bitcoin ETF by the tip of this 12 months.

Here’s what Mike Novogratz mentioned in the present day on CNBC

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

Note that Galaxy itself has filed for a Spot Bitcoin ETF in collaboration with Invesco. On CNBC’s “Squawk Box”, Novogratz mentioned in the present day:

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

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

Barclays analyst shares his view on Coinbase inventory

Analyst Benjamin Budish informed purchasers in a analysis word in the present day on Wednesday that approval of a Spot Bitcoin ETF will doubtless be a “limited” benefit for Coinbase.

It is just not 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 (at the very least) however mentioned it’s unlikely to earn vital custodial and prime brokerage charges.

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