Last Updated: Feb. 14, 2024 at 6:24 a.m. ET
First Published: Feb. 14, 2024 at 4:29 a.m. ET
One of the big concerns for investors in Coinbase Global is that the launch of spot bitcoin exchange-traded funds would hurt its main crypto brokerage.
At one competitor, that’s not been the case. Robinhood Markets HOOD CFO Jason Warnick said the spot bitcoin ETF hasn’t hurt demand elsewhere.
Related: Robinhood’s stock soars as retail investors…
One of the big concerns for investors in Coinbase Global is that the launch of spot bitcoin exchange-traded funds would hurt its main crypto brokerage.
At one competitor, that’s not been the case. Robinhood Markets
HOOD
CFO Jason Warnick said the spot bitcoin ETF hasn’t hurt demand elsewhere.
Related: Robinhood’s stock soars as retail investors wade back into the market
“So far, we’re seeing nice interest in the ETFs, but we think it’s additive,” he said, according to a transcript compiled by S&P Global Market Intelligence. “About 5% of our overall trading in crypto is through the ETF, with 95% still being on spot trading through the crypto business. And that’s stabilized.”
On the ETFs, he added: “We think it increases overall market interest in crypto and also brings liquidity to the market. So net-net, we’re really pleased with the Bitcoin ETFs.”
Granted, crypto is a small part of Robinhood’s business. In January, for example, it averaged 1.7 million equity trades, 0.7 million options trades and 0.3 million crypto trades per day.
Coinbase shares
COIN
have drifted since the Jan. 11 spot bitcoin ETF launch, though over 52 weeks they have more than doubled.
In premarket trade, Coinbase rallied 7%.
Coinbase reports results on Thursday, though that’s for the fourth quarter when the spot bitcoin ETFs weren’t on the market. It’s due to take shareholder questions.
