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Crypto

FTX Collapse Shakes Wall Street’s Conviction in Coinbase

  • Bank of America downgrades to neutral on risk from FTX fallout
  • Stock has fewest analyst buy ratings since August 2021
Bloomberg business news
FTX Drama: Investors Assess What's Next for Crypto

Just last year, Wall Street banks were helping shepherd Coinbase Global Inc. into the public market as one of the hottest new stocks. Now, after a collapse in its share price -- and pretty much everything else related to crypto -- analysts are losing faith.

Bank of America Corp. became the latest firm to cut its rating on the cryptocurrency exchange, downgrading it to neutral from buy on Friday, citing concern about the broader fallout from the collapse of Sam Bankman-Fried’s FTX exchange. The move leaves Coinbase with 14 buy-equivalent analyst recommendations, its lowest number since August 2021, according to data compiled by Bloomberg.