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Coinbase Surges on Blockbuster Q4 Earnings: ETFs to Buy

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Coinbase Global (COIN - Free Report) cheered investors after reporting solid fourth-quarter 2023 earnings results on Feb 15, after the closing bell. It posted its first quarterly profit in two years, beating on earnings and revenues. Trading volume also surged on a new wave of optimism about digital assets, marking a turning point for the largest U.S. cryptocurrency exchange.

Driven by the solid results, COIN shares jumped as much as 15% in the after-market hours on elevated trading volumes. Investors should tap the opportune moment by investing in ETFs with double-digit exposure to this U.S. cryptocurrency exchange. These include First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT - Free Report) , Fidelity Crypto Industry and Digital Payments ETF (FDIG - Free Report) , ARK 21Shares Blockchain and Digital Economy Innovation ETF (ARKD - Free Report) , Global X Blockchain ETF (BKCH - Free Report) and ARK Fintech Innovation ETF (ARKF - Free Report) .

Coinbase's earnings per share were $1.04, beating the Zacks Consensus Estimate of a loss of 9 cents. It improved from a loss of $2.46 per share reported in the year-ago quarter and ended a streak of seven consecutive quarterly losses. Revenues climbed 51% year over year to $953.8 million and beat estimates of $731.9 million. The annual revenue growth represents the exchange's second consecutive increase after six straight quarters of double-digit declines.

Trading volume jumped to $154 billion from $76 billion in the previous quarter and $145 billion in the year-ago quarter. The improvement was attributed to a resurgence of interest in crypto (read: Spot Bitcoin ETFs Attract $10B in AUM in Less Than a Month).

Total transaction revenues surged 83% from the third quarter to $529 million. Consumer transaction revenues jumped to $492.5 million, nearly doubled from the third quarter, whereas institutional transaction revenues more than doubled quarter over quarter to $36.7 million. Total subscription and services revenues climbed 33% from the previous quarter to $375.4 million.

The cryptocurrency exchange expects first-quarter subscription and services revenues of $410-$480 million. It further expects to "generate meaningful" positive adjusted EBITDA for 2024.

ETFs in Focus

First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT - Free Report)

First Trust SkyBridge Crypto Industry and Digital Economy ETF is designed to provide exposure to companies that SkyBridge believes are driving cryptocurrency, crypto assets and digital economies-related innovation. SkyBridge identifies securities primarily via “bottom up” research focused on finding companies leading in the crypto industry ecosystem. First Trust SkyBridge Crypto Industry & Digital Economy ETF holds 30 stocks in its basket, with Coinbase occupying the second position at 18.8% share.

First Trust SkyBridge Crypto Industry & Digital Economy ETF charges 85 bps in fees per year from investors. It has amassed $37.2 million in its asset base and trades in an average daily volume of 70,000 shares (read: Bitcoin Tops 52,000: 5 ETFs Leading the Rally).

Fidelity Crypto Industry and Digital Payments ETF (FDIG - Free Report)

Fidelity Crypto Industry and Digital Payments ETF offers exposure to companies engaged in activities related to cryptocurrency, related blockchain technology, and digital payments processing. It tracks the Fidelity Crypto Industry and Digital Payments Index and holds 44 stocks in its basket. Coinbase takes the top spot with a 15% share.

Fidelity Crypto Industry and Digital Payments ETF has accumulated $88.2 million in its asset base and trades in an average daily volume of 105,000 shares. It charges 39 bps in annual fees.

ARK 21Shares Blockchain and Digital Economy Innovation ETF (ARKD - Free Report)

ARK 21Shares Blockchain and Digital Economy Innovation ETF is one of the first actively managed ETFs to invest in digital asset futures (bitcoin and ether) and public equities of companies engaged in the blockchain industry and/or digital economy, providing holistic exposure to growth of blockchain technology. ARKD focuses on a concentrated, high-conviction portfolio of equities through a proprietary valuation model. It holds 11 stocks in its basket, with Coinbase taking the third spot at 13.4% share.

ARK 21Shares Blockchain and Digital Economy Innovation ETF has amassed $2 million in its asset base and charges 90 bps in annual fees.

Global X Blockchain ETF (BKCH - Free Report)

Global X Blockchain ETF seeks to invest in companies positioned to benefit from the increased adoption of blockchain technology, including companies in digital asset mining, blockchain and digital asset transactions, blockchain applications, blockchain and digital asset hardware, and blockchain and digital asset integration. Global X Blockchain ETF follows the Solactive Blockchain Index and holds 25 stocks in its basket. Here, also, Coinbase is the third firm, accounting for 13.1% of assets.

Global X Blockchain ETF has gathered $148.7 million in its asset base and trades in an average daily volume of 124,000 shares. It charges 50 bps in annual fees.

ARK Fintech Innovation ETF (ARKF - Free Report)

ARK Fintech Innovation ETF is an actively managed fund that invests in companies with the theme of Fintech innovation. The Adviser defines Fintech innovation as the introduction of a technologically-enabled product or service that potentially changes the way the financial sector works, which, ARK believes, includes transaction innovations, blockchain technology, risk transformation, frictionless funding platforms, customer-facing platforms and new intermediaries. The ETF holds 31 stocks, with COIN occupying the top position at 12.3% of the assets.

ARK Fintech Innovation ETF charges 75 bps in annual fees and trades in an average daily volume of 718,000 shares. It has managed assets worth $1.1 billion.

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