- ORIGINAL NEWS
Coinbase, Robinhood shares are lower despite bitcoin ETF approval
- SUMMARY
Coinbase and Robinhood stocks have taken a hit as traders consider the potential impact of bitcoin exchange-traded fund (ETF) approval in the United States.
The SEC’s recent move is seen as a boost to the crypto industry, lending credibility to the volatile asset class.
However, there’s a concern that a spot bitcoin ETF could challenge Coinbase’s position as the go-to platform for investing in digital currencies.
This brought Coinbase stock down by more than 6% and Robinhood by over 2%.
Despite the current dip, both companies had a strong year in 2023, with Coinbase gaining 391.4% and Robinhood soaring by 56%.
- NEWS SENTIMENT CHECK
- Overall sentiment:
neutral
Positive
“Coinbase CEO Brian Armstrong told CNBC’s Andrew Ross Sorkin in an interview that aired Thursday. “There’s 52 million Americans who have been using crypto over the past decade, and I think they’ve been waiting for some kind of acknowledgment from the government, and the SEC in particular, that this asset class is here to stay — and they finally got that.””
“Coinbase is coming off a monster year, rallying 391.4% in 2023. Robinhood also soared more than 56% last year.”
Negative
“Shares of Coinbase and Robinhood were lower Thursday as traders weigh how the approval of bitcoin exchange-traded funds in the U.S. could weigh on the crypto trading platforms.”
“There is some concern that the advent of a spot bitcoin ETF in the U.S. could put pressure on Coinbase down the road — as it offers investors an easier way to invest in the cryptocurrency.”