Coinbase's spot bitcoin ETF volumes drag on rising outflows
Coinbase (COIN) sees its spot bitcoin ETF outflows exceeding inflows. Coinbase stock slumps by over 9% at Monday's close. Yahoo Finance Live examines the crypto platform's stock and what is weighing on it.
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Editor's note: This article was written by Luke Carberry Mogan.
Video Transcript
- Let's talk about Coinbase. Mizuho Securities stan Dolev dollar pointing to Bitcoin ETF assets under management at Coinbase, likely below levels prior to the mid-January launch. Those shares down by 9%. Now, Dolev in a note here, talked about the Bitcoin ETF as a double whammy for the company. So outflows from ETFs where Coinbase is the custodian, he wrote, exceed inflows here. And that's mostly because of the outflows from GBTC, the Grayscale Bitcoin ETF, and that the inflows have not more than made up for that.
- Yeah. This is a rough start to the year now for Coinbase. Stocks down about 30% so far this year. Of course, listen, that's after a monster 2023, so just give that good context. Also good piece in Bloomberg today. Did you see how the company and CEO Brian Armstrong are preparing in their words, a war chest to back crypto friendly politicians, that Armstrong Coinbase account for about a third of the 85 million now raised by the Fair Shake Super Pac, which has supported folks like Republicans like Tom Emmer, Democrats like Josh Gottheimer. So Coinbase pulling out the checks and working the halls of power.
- Interesting, I had not seen that. But I mean, what's interesting about that is, Coinbase for a long time has been quite politically active but that's not going to help it with this core issue, right? The Bitcoin ETF assets that's separate from what's been going on in politics. I guess, unless you start getting in Ether, ETF, or whatever else. But nonetheless, their ETF AUM, assets under management, according to Dolev has fallen to about $25.9 billion.
- It's always good to have friends in high places though, does it? Does it?
- I just don't know how much it'll help. But we'll see.
- Fair question.
- Maybe it will.
- Fair question.
