Posted: February 14, 2024 at 4:29 AM ET
One big concern for investors in Coinbase Global is that although the company has a role in several spot Bitcoin exchange-traded funds that have been launched, the new way of sourcing cryptocurrencies will hurt major cryptocurrency brokerages.
At one competitor, this was not the case. The spot Bitcoin ETF hasn't hurt demand elsewhere, said Jason Warnick, CFO of Robinhood Markets HOOD.
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One big concern for investors in Coinbase Global is that although the company has a role in several spot Bitcoin exchange-traded funds that have been launched, the new way of sourcing cryptocurrencies will hurt major cryptocurrency brokerages.
At one competitor, this was not the case. Robinhood Markets
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CFO Jason Warnick said the spot Bitcoin ETF hasn't hurt demand elsewhere.
Related: Robinhood stock rises as retail investors return to the market
“So far, we're seeing good interest in ETFs, but we think it's an add-on,” he said, according to a text compiled by S&P Global Market Intelligence. “About 5% of our total crypto trading is through the ETF, with 95% still being spot trading through the crypto business. This has stabilized.”
Regarding ETFs, he added: “We think they increase the overall market interest in cryptocurrencies and also bring liquidity to the market. So, we are really happy with Bitcoin ETFs.”
To be sure, cryptocurrencies are a small part of Robinhood's business. In January, for example, it averaged 1.7 million stock trades, 0.7 million options trades, and 0.3 million crypto trades.
Coinbase shares
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These currencies have drifted since the launch of the Bitcoin ETF on January 11, although they have more than doubled over 52 weeks.
Coinbase reported its results on Thursday, although that was for the fourth quarter when spot bitcoin ETFs were not on the market. It is scheduled to take shareholders' questions.
