Publicly-traded digital asset stocks have been broadly renewed by a series of favourable regulatory decisions in the United States, but none more so than Coinbase (NASDAQ:COIN).
The San Francisco crypto exchange is the largest and most prominent digital asset stock, and was the first major international cryptocurrency business to IPO, in 2021. It is the largest holding in the ETC Group Digital Assets and Blockchain ETF (KOIN).
The company underwent wide-scale restructuring in the wake of the crypto bear market, shedding nearly a third of its workforce, but has been investing heavily in acquisitions and new divisions over the last 12 months.
Testament to its improved confidence, the company raised $57m as per a September 2023 regulatory filing1 to open a new division lending crypto assets to large institutions in the United States. A previous attempt to expand into lending crypto to retail players, called Coinbase Lend, led to threats of lawsuits2 by the Securities and Exchange Commission (SEC), and the project was shuttered in 2021.
The crypto industry is in the midst of a bear market, but has been granted two major regulatory boosts in the last month. On 13 August, Ripple won3 a partial victory against the SEC’s attempt to sue its executives, with courts deciding that sales of the XRP crypto asset did not constitute a sale of securities. Then on 29 August, a three-judge panel ruled that the regulator had showed “arbitrary and capricious” reasoning to deny attempts by the largest Bitcoin investment product, Grayscale’s Bitcoin Trust (GBTC), to convert into an ETF. GBTC currently holds 569,894 Bitcoins, worth just over $16bn.
Coinbase is still some way off its IPO price of $342, amid the massive crypto bull run of 2021, but reached a zenith at the turn of 2023 and has more than doubled since then, up 130% over the last nine months. For more crypto insights visit https://www.etc-group.com/blog/
Sources available upon request. All performance figures are showing net data. Past performance is not indicative of future performance and when you invest in ETFs your capital is at risk.
© ETC Group 2019-2023 │All rights reserved
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1M
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3M
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6M
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YTD
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12M
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SI
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ETC Group Digital Assets and Blockchain Equity UCITS ETF
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-21.27%
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8.68%
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27.08%
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61.35%
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3.06%
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-74.90%
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Solactive ETC Group Digital Assets and Blockchain Equity Index
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-21.24%
|
8.90%
|
27.63%
|
62.33%
|
3.91%
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-74.61%
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|
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|
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ETC Group Global Metaverse UCITS ETF
|
-8.89%
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5.89%
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19.72%
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36.87%
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21.38%
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8.29%
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Solactive ETC Group Global Metaverse Index
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-8.82%
|
6.09%
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20.18%
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37.57%
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22.08%
|
9.13%
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Please note that all performance figures are showing net data. Source: Bloomberg / HANetf. Data as of 31/08/2023
Performance before inception is based on back tested data. Back testing is the process of evaluating an investment strategy by applying it to historical data to simulate what the performance of such strategy would have been. Back tested data does not represent actual performance and should not be interpreted as an indication of actual or future performance. Past performance for the index is in USD. Past performance is not an indicator for future results and should not be the sole factor of consideration when selecting a product. Investors should read the prospectus of the Issuer (“Prospectus”) before investing and should refer to the section of the Prospectus entitled ‘Risk Factors’ for further details of risks associated with an investment in this product. When you invest in ETFs and ETCs, your capital is at risk.