The Crypto Roundup: 15 February 2024 | CryptoCompare.com

Crypto exchange Coinbase (COIN) is expected to announce impressive earnings and revenue for the fourth quarter of last year later today, fueled by heightened trading activity amidst a broader market upswing. Analysts are optimistic about Coinbase’s performance, attributing it to renewed interest and amplified trading volumes in the digital asset currency space sector.

John Todaro, an analyst at investment bank Needham, anticipates a strong quarter for Coinbase, buoyed by rebounding trading volumes and steady interest income. Similarly, Chase White of Compass Point foresees the strongest revenue and adjusted EBITDA for Coinbase since Q1 2022.

Projections indicate a substantial surge in Coinbase’s revenue, expected to reach $826.1 million, up from $674.1 million in the previous quarter, according to FactSet consensus estimates. Likewise, trading volume is set to soar to $142.7 billion, a notable increase from $76 billion in Q3. Analysts also forecast earnings per share to rise to $0.02, compared to a loss of $0.01 per share in the preceding quarter.

However, analysts hold divergent views on the implications of Coinbase’s involvement in spot Bitcoin ETFs. While some foresee the potential for increased spot trading, concerns are raised about the company’s custodial services for these ETFs. Mizuho analyst Dan Dolev highlights outflows from these ETFs, driven by Grayscale’s Bitcoin Trust (GBTC), potentially impacting Coinbase’s ETF-related assets under management.

Nonetheless, analysts agree that Coinbase’s market share remains relatively secure. Todaro suggests that the launch of spot Bitcoin ETFs in the U.S. is unlikely to lead to a reduction in trading fees. Additionally, the introduction of Coinbase’s offshore derivatives exchange is seen as a significant milestone, attracting substantial volume and expanding the platform’s footprint within the derivatives market.

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• Source: https://www.cryptocompare.com/email-updates/daily/2024/feb/15/