Market Share Of Coinbase’s Bitcoin Rises To 60% After ETF Approval

(CTN News) – Following the approval of Spot Bitcoin ETFs, Coinbase has seen a surge in BTC market dominance in the U.S. This may be the result of acting as a custodian for 8 of the 11 newly approved Bitcoin ETFs.

Market share of Bitcoin increases at Coinbase

According to statistics from Kaiko, a blockchain data provider, Coinbase’s share of the Bitcoin market has risen from 47% to 60% in the last three months alone. The significant increase underscores rising influence as well as the impact of Spot Bitcoin ETF approval on crypto exchange platforms’ market positions.

Coinbase currently custody Bitcoin ETFs offered by BlackRock, Grayscale, Ark 21Shares, and Franklin Templeton, among others. Coinbase is also expected to expand its crypto ETF custodian services with Spot Ethereum ETFs.

Furthermore, Coinbase’s Bitcoin market share surge also affected its services recently, resulting in a major outage. A recent outage has been attributed to the unforeseen surge in activity within the cryptocurrency market, according to CEO Brian Armstrong. Further, he stated that the team had anticipated a 10x increase in volume. However, the reality exceeded expectations due to the rally in Bitcoin prices, resulting in the app crashing.

Additionally, between 12:15 p.m. Eastern Time and 12:30 p.m. Eastern Time on February 28, Bitcoin’s price fell from $64,000 to $59,000, a 9% decline. There is speculation that this sudden pullback was triggered by an outage on Coinbase, which resulted in users having no money in their accounts due to a $0 balance.

COIN stock rating raised by Goldman Sachs

Coinbase stock was upgraded from Sell to Neutral by Goldman Sachs on Thursday, March 7. Additionally, the investment firm has set a fresh stock price target of $282 for the cryptocurrency exchange platform. As a result of recent developments in the crypto market, which have seen the Bitcoin price hit all-time highs, this upgrade is consistent with recent developments.

Since Goldman Sachs upgraded revenue estimates by 48% since early February, daily trading volumes have surged to levels not seen since 2021. These heightened volumes have also played a major role in Coinbase’s stock reevaluation.

Goldman Sachs’ revised perspective on COIN stock is based on improved performance and adoption metrics in the cryptocurrency market. In light of the recent surge in Bitcoin, altcoin prices, and trading volumes, the analyst highlighted a substantial increase in revenue estimates.

Compared to the firm’s earlier Coinbase valuation, the revised price target of $282 signifies a significant change. Based on the current trends in the Bitcoin and overall crypto markets as well as the platform’s trading activity, this update indicates a more positive short-term outlook for CEX.

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