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3 Stocks to Watch as Coinbase (COIN) Takes Centerstage
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Having received a slew of applications on Jan 10, the U.S. Securities and Exchange Commission (“SEC”) finally green-lit the launch of 11 spot Bitcoin ETFs in what can be dubbed a landmark moment for the crypto market. Investors had been expecting this for over six months since late June 2023, when big names from the traditional asset management domain had applied for these ETFs. Coinbase Global, Inc. (COIN - Free Report) , the financial infrastructure and technology provider, is pitted to be one of the biggest winners in the crypto market because of the SEC’s actions.
Bitcoin rose 157% in 2023, re-emerging from a lackluster prior year. Much of the benchmark crypto coin’s rise has been due to countries around the world seemingly making an effort to take cryptocurrency mainstream, and the focus has been on the SEC. These approvals from the SEC follow years of stalling and outright rejections of numerous attempts to launch spot Bitcoin ETFs. Of the 13 applications the SEC had in hand, Coinbase Global is the custodian for 10.
Coinbase is the largest crypto-trading platform in the world and renders itself a logical choice for Bitcoin ETFs. The company is known for its low transaction costs and extensive safety measures. Its two-factor authentication and vault system have made it a lucrative choice for investors when compared to its competitors.
Currently, the company is in a legal battle with the SEC which alleges that the exchange flouted laws by operating as an "unregistered broker dealer" in buying and selling similarly unregistered digital assets. Coinbase argues that it has sold no tokens on its platform that constitute securities because there's no investment contract between the token issuers and users who are buying the tokens on the secondary market. If the court decides to validate this argument, it could significantly hamper SEC’s attempt to regulate the company through various enforcement actions. But with Bitcoin spot ETFs already approved, COIN’s stock should move upward.
COIN’s expected earnings growth rate is 92.5% for the current year. The Zacks Consensus Estimate for its current-year earnings has improved 9.2% over the past 60 days. COIN currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Selecting a cryptocurrency exchange is often the first step investors take when exploring the world of digital assets. It will be prudent to keep a watch on a few competitors of COIN as it gains more prominence.
Cboe Global Markets, Inc. (CBOE - Free Report) is an options exchange marketplacethat also engages in the trading of digital currencies. As a digital asset trader, it operates as an exchange and futures marketplace. CBOE’s expected earnings growth rate for the current year is 11.7%. The Zacks Consensus Estimate for its current-year earnings has improved 2.4% over the past 60 days. CBOE currently carries a Zacks Rank #2.
Interactive BrokersGroup Inc. (IBKR - Free Report) is a global automated electronic broker. IBKR executes, processes and trades in cryptocurrencies. IBKR’s expected earnings growth rate is 9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3% over the past 60 days. IBKR currently carries a Zacks Rank #3 (Hold).
Robinhood Markets, Inc. (HOOD - Free Report) is a financial services platform that allows users to invest in, among other things, ETFs and cryptocurrencies. HOOD’s expected earnings growth rate is 45.3% for the current year. The Zacks Consensus Estimate for current-year earnings has remained unchanged over the past 60 days. HOOD currently carries a Zacks Rank #3.
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3 Stocks to Watch as Coinbase (COIN) Takes Centerstage
Having received a slew of applications on Jan 10, the U.S. Securities and Exchange Commission (“SEC”) finally green-lit the launch of 11 spot Bitcoin ETFs in what can be dubbed a landmark moment for the crypto market. Investors had been expecting this for over six months since late June 2023, when big names from the traditional asset management domain had applied for these ETFs. Coinbase Global, Inc. (COIN - Free Report) , the financial infrastructure and technology provider, is pitted to be one of the biggest winners in the crypto market because of the SEC’s actions.
Bitcoin rose 157% in 2023, re-emerging from a lackluster prior year. Much of the benchmark crypto coin’s rise has been due to countries around the world seemingly making an effort to take cryptocurrency mainstream, and the focus has been on the SEC. These approvals from the SEC follow years of stalling and outright rejections of numerous attempts to launch spot Bitcoin ETFs. Of the 13 applications the SEC had in hand, Coinbase Global is the custodian for 10.
Coinbase is the largest crypto-trading platform in the world and renders itself a logical choice for Bitcoin ETFs. The company is known for its low transaction costs and extensive safety measures. Its two-factor authentication and vault system have made it a lucrative choice for investors when compared to its competitors.
Currently, the company is in a legal battle with the SEC which alleges that the exchange flouted laws by operating as an "unregistered broker dealer" in buying and selling similarly unregistered digital assets. Coinbase argues that it has sold no tokens on its platform that constitute securities because there's no investment contract between the token issuers and users who are buying the tokens on the secondary market. If the court decides to validate this argument, it could significantly hamper SEC’s attempt to regulate the company through various enforcement actions. But with Bitcoin spot ETFs already approved, COIN’s stock should move upward.
COIN’s expected earnings growth rate is 92.5% for the current year. The Zacks Consensus Estimate for its current-year earnings has improved 9.2% over the past 60 days. COIN currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Selecting a cryptocurrency exchange is often the first step investors take when exploring the world of digital assets. It will be prudent to keep a watch on a few competitors of COIN as it gains more prominence.
Cboe Global Markets, Inc. (CBOE - Free Report) is an options exchange marketplacethat also engages in the trading of digital currencies. As a digital asset trader, it operates as an exchange and futures marketplace. CBOE’s expected earnings growth rate for the current year is 11.7%. The Zacks Consensus Estimate for its current-year earnings has improved 2.4% over the past 60 days. CBOE currently carries a Zacks Rank #2.
Interactive BrokersGroup Inc. (IBKR - Free Report) is a global automated electronic broker. IBKR executes, processes and trades in cryptocurrencies. IBKR’s expected earnings growth rate is 9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3% over the past 60 days. IBKR currently carries a Zacks Rank #3 (Hold).
Robinhood Markets, Inc. (HOOD - Free Report) is a financial services platform that allows users to invest in, among other things, ETFs and cryptocurrencies. HOOD’s expected earnings growth rate is 45.3% for the current year. The Zacks Consensus Estimate for current-year earnings has remained unchanged over the past 60 days. HOOD currently carries a Zacks Rank #3.