- JPMorgan analyst criticized the cryptocurrency exchange Coinbase.
- The expert believes that the company has provided insufficient information about the interaction with spot bitcoin-ETFs.
- Kenneth Worthington questions the positive impact of investment products on Coinbase’s revenues.
JPMorgan Chase Financial Group analyst Kenneth Worthington criticized the cryptocurrency exchange Coinbase. In his opinion, the company does not sufficiently disclose information about the impact of spot bitcoin-ETFs on its business, writes CoinDesk.
On February 15, 2024, Coinbase published a financial report for the fourth quarter of last year. According to the document, the company’s revenues increased by 41% to $954 million.
The company said that in addition to the overall market recovery, the launch of spot bitcoin-ETFs contributed to the improved performance. Coinbase is a partner of eight crypto funds, noted representatives of the exchange. At the same time, the company calls the launch of cryptocurrency ETFs a “turning point.”
However, a JPMorgan analyst was skeptical of the firm’s statements. According to him, Coinbase does not disclose the details of its cooperation with the mentioned investment products. The company limited itself to saying that it provides custodial services to spot bitcoin-ETFs.
“The firm’s management extols its involvement in U.S. cryptocurrency ETFs as a net positive, but we are still unsure of its true impact on earnings as we see both positives and negatives,” Worthington said.
It’s worth noting that JPMorgan previously upgraded Coinbase’s stock rating to “neutral” with a $80 target price. The company noted that they are not ready to recommend investments on this position, but are obliged to point out market changes.
Recall, we wrote that Coinbase will charge a commission for converting USDC to US dollars.
