Waning Bitcoin ETF Hype to Drag on Coinbase, JPMorgan Says
- Analysts cut Coinbase to underweight for the first time
- Stock has come under pressure this year as Bitcoin rally fades
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The biggest US cryptocurrency exchange could fall victim to a slump in Bitcoin and waning enthusiasm for exchange-traded funds that invest directly in the digital token, according to JPMorgan Chase & Co.
“We think the catalyst in Bitcoin ETFs that has pushed the ecosystem out of its winter will disappoint market participants,” analysts led by Kenneth Worthington wrote in a note on Monday, downgrading Coinbase Global Inc. to underweight from neutral.