Investing
Coinbase and crypto stocks dip despite spot Bitcoin ETF approval
© Reuters.
NEW YORK – In a surprising market response, shares of prominent cryptocurrency-related companies, including Coinbase (NASDAQ:) Global Inc. (NASDAQ:COIN), MicroStrategy Inc. (NASDAQ:MSTR), Marathon Digital (NASDAQ:) Holdings Inc. (NASDAQ:MARA), and Riot Platforms Inc. (NASDAQ:), experienced a decline on January 11, following the Securities and Exchange Commission’s (SEC) approval of spot exchange-traded funds (ETFs).
Despite the potential for increased mainstream adoption of cryptocurrencies with the SEC’s green light for spot Bitcoin ETFs, these companies saw their stock prices fall. The decline came even as Grayscale Bitcoin Trust rallied initially after its transformation into an ETF. This market reaction was somewhat unexpected, as spot Bitcoin ETFs have long been anticipated to provide a more direct exposure to Bitcoin’s price for investors.
On January 10 and 11, Coinbase, a leading cryptocurrency exchange, faced significant selling pressure. This occurred even with the company’s high trading volumes and its key role as the custodian for Grayscale’s newly approved ETF and other funds. The fall in stock prices suggests that investors might have had concerns beyond the immediate positive news of the ETF approval.
Analyst ratings for these companies have shown a varied outlook. Mizuho has maintained an “underperform” rating on Coinbase with a price target of $54. In contrast, MicroStrategy, known for its substantial Bitcoin holdings on its balance sheet, has received a “buy” rating with a target price of $607.75. Marathon Digital, a cryptocurrency miner, holds a “hold” recommendation with a target of $13.61, indicating a more neutral stance from analysts. Similarly, Riot Platforms, another player in the crypto mining industry, has been given a “moderate buy” rating with a $17.09 target price.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Read the full article here
-
Side Hustles7 days ago
3 Steps You Can’t Miss When Growing Your Business
-
Investing7 days ago
How I Transformed My Business by Letting Go of Low-Value Tasks
-
Make Money7 days ago
Here’s the Typical American’s Income at Every Age. How Do You Compare?
-
Investing7 days ago
Germany stocks lower at close of trade; DAX down 0.65% By Investing.com
-
Passive Income5 days ago
Are You Running Your Business, or Is Your Business Running You?
-
Side Hustles5 days ago
How Your Body Language Can Help Win a Disagreement
-
Investing5 days ago
7 Marketing Strategies to Help Your Startup Grow and Scale
-
Side Hustles6 days ago
How to Develop Empowered Leaders Within Your Own Team