JPMorgan sees crypto ETFs as competitive threat to Coinbase

JPMorgan sees high expectations for the impact of a spot bitcoin exchanged traded fund on the cryptocurrency markets as suggested by the nearly 50% increase bitcoin price over the last two months. The firm’s views are more subdued for crypto ETF adoption and growth. However, if the consensus view is correct, Coinbase will be a beneficiary near term as bitcoin custody and surveillance revenue will more than offset declines in bitcoin trading volume as assets migrate to ETFs, the analyst tells investors in a research note. However, over the intermediate term, JPMorgan sees crypto ETFs as a competitive threat to Coinbase, with new account growth slowing as novice crypto investors get their initial exposure and possibly final exposure through ETFs rather than Coinbase. The firm keeps a Neutral rating on the shares with an $80 price target.