6 ETFs That Have Fast Filled Coinbase In Their Roster

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Given the current cryptocurrency craze, Coinbase Global’s (COIN - Free Report) made a successful debut on the Nasdaq last week, raising about 31% on its first trading day on Apr 14. It is the first major crypto company to go public with valuation of $65 billion and will be the biggest beneficiary of the cryptocurrency revival.

Coinbase, the biggest public pure-play cryptocurrency platform, had 56 million verified users, with $1.8 billion in revenues in the first quarter, according to CNBC. About $223 billion in crypto assets were stored on its platform through the end of Q1 2021. This is more than 11.3% of all cryptocurrencies in existence currently, and triple the cryptocurrency market share that Coinbase possessed three years ago.

Coinbase swung to a profit of $322.3 million in 2020 versus a net loss of $30.4 million in 2019. For the first quarter of fiscal 2021, Coinbase estimated it would post net income of $730-$800 million compared to net income of just $32.26 million in the first three months of 2020.

Coinbase: A Good Bet?

The future of Coinbase seems solid given the ongoing digital currency boom. Overall, cryptocurrency market capitalization hit an all-time peak of $2 trillion early this month buoyed by strong demand from both institutional and retail investors on hopes that it will become a mainstream investment and payments vehicle. The most popular digital currency, Bitcoin, has more than doubled this year while ethereum has gained nearly 190%. Big companies including Tesla (TSLA - Free Report) and BNY Mellon have also stepped up their support to cryptocurrencies.

Additionally, digitization will likely drive growth in the digital assets space. This is especially true as the need for secure and rapid electronic movement of assets or payments will lead to the higher adoption of digital asset systems. MarketsandMarkets expects the cryptocurrency market to witness a CAGR of 7.1% from $1.6 billion in 2021 to $2.2 billion by 2026.

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