Coinbase’s stock price has soared 60% over a year-to-date timeframe, thanks to the Bitcoin ETF boom.
Publicly traded cryptocurrency exchange Coinbase has seen a remarkable price increase in its stock, $COIN. The stock’s price has skyrocketed by a whopping 60% year to date (YTD) to a trading price of $256 as investors inject billions of dollars into spot Bitcoin exchange-traded fund (ETF) products.
$COIN Sees Significant Price Rebound
In April 2021, Coinbase became a public company as its stock began trading on the Nasdaq exchange at a reference price of $250 per share. In early November 2021, the $COIN stock saw its peak closing price of $357.39. Since then, the stock has seen significant decreases. In late December 2022, the asset’s price plunged to as low as $32.5 amid the ripple effect of the crypto market crash and FTX collapse at the time.
Source: Nasdaq
According to the chart above, the $COIN stock has seen a massive 341% price surge over the past year. Notably, this will be the first time $COIN will soar above the $250 price mark over the past two years. The price rebound comes despite a continuous $COIN shares offload from the asset management company ARK Invest.
Why is $COIN Increasing?
Coinbase’s stock saw its latest price surge due to its role in the continuous spot Bitcoin ETF explosion. Several financial institutions offering the Bitcoin-based ETF product employed Coinbase Custody as a crypto custodian for BTC accrued by investors. Since its approval in the United States on January 10th, these Bitcoin ETF issuers have accumulated about $30 billion in BTC.
The stock’s price can also be attributed to the impressive performance of the global crypto market in recent times. For example, Bitcoin saw a brief price surge to an ATH of $70,100 before a market correction ensued.
Financial institutions have filed for a spot Ethereum ETF with the U.S. regulatory agency. Some have embraced Coinbase Custody as a crypto custodian for the product. If approved, Coinbase’s shares may likely see more increases.
