Bitcoin ETF Hype is Likely Impacting Coinbase’s Popularity Among Retail Investors

Nausheen Thusoo
February 21, 2024
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Bitcoin ETF To Grab $5B AUM From Over 700 Institutional Investors: Bitwise CIO

Highlights

  • A recent Yahoo Finance report shows that Coinbase is benefitting significantly from the hype around Bitcoin ETF.
  • A recent CoinShares report showed that Bitcoin ETFs marked record inflows in a week.
  • The hype around Bitcoin ETFs has caused more and more institutional investors to jump on the crypto bandwagon.

Bitcoin ETF has seen a huge influx in capital in the past weeks. The hype around the ETF has resulted in more investors trying to hop on the crypto bandwagon via traditional institutions. A recent Yahoo Finance report shows that Coinbase is benefitting significantly from the hype around Bitcoin ETF.

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 Coinbase Retail Investors Surge as Bitcoin ETF Improves Sentiments

Coinbase saw a surge in its stock price last week after swinging to profit for the first time after 2021. The company also saw Q4 institutional transaction revenue ascending to $37 million. It was up 161% quarter on quarter suggesting an increase in investor traction. Institutional trading volume for the same time also increased by 92% q-o-q, in line with the US spot market. According to a Yahoo Finance interview, the overall increase in Coinbase’s institutional transactions was a ripple effect of the hype around the approval of Bitcoin ETFs. The interview report further highlights that we are also beginning to see an increasing number of retail investors for the future of the crypto exchange’s earnings.

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Will Bitcoin ETF Hype Influence Coinbase’s Future Earnings?

Bitcoin ETFs have improved investor sentiments around the OG-crypto currency. Not only did the approval provide legitimacy to Bitcoin, but it also bridged the gap between traditional traders and decentralized markets. With the current push in its retail investor numbers, Coinbase will likely see an upward trend in retail trading as and when ETFs gain more hype.

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Bitcoin ETFs Mark Record Inflows

A recent CoinShares report showed that Bitcoin ETFs marked record inflows in a week. The report highlighted that Bitcoin ETFs witnessed around $2.4 billion in weekly inflows, making a record number and also indicating strengthened investor sentiments. This also comes at a time when Blackrock’s IBIT had previously ranked in the top list of the overall ETF market.

The hype around Bitcoin ETFs has caused more and more institutional investors to jump on the crypto bandwagon. At present the future looks bright for a lot of cryptocurrencies right now, with Bitcoin leading the pack. Numerous organizations have been speculating that the OG-crypto’s pricing may increase in the future. This includes the prediction from Bitwise that the price of Bitcoin will rise above $80,000 in 2024. Institutional investment in Bitcoin will remain the primary emphasis, at least until the first half of 2024, according to Coinbase. Today’s weekly inflow report further cements the idea that Bitcoin might its all-time high bullish level in the upcoming months of 2024.

 

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.