According to "CoinDesk", JPMorgan said in a research report on Monday (22nd) that the launch of the Bitcoin spot ETF, the main positive catalyst for the cryptocurrency market last year, is likely to change in 2024 and make Investors were disappointed, so the investment bank downgraded the stock rating of U.S. cryptocurrency exchange Coinbase (COIN) to "underweight" (Underweight).
JPMorgan Chase downgraded $COIN from "Neutral" to underweight, with an unchanged target price of $80. COIN closed at $124.19 on Tuesday (23rd), a decrease of 3.14%. JPMorgan Chase said that while the exchange has made progress on a number of important initiatives, however, 2024 may be more challenging after the stock rose 390% last year.
A team of analysts led by Kenneth Worthington wrote:
“While we continue to believe that Coinbase is the dominant U.S. exchange in the crypto ecosystem and the global leader in cryptocurrency trading and investing, we believe that the Bitcoin ETF that drives the ecosystem out of the winter will serve as a catalyst that will enable market participants to disappointment."
The report noted that analysts are concerned that with so much enthusiasm for Bitcoin ETFs and the consequent new flows into the cryptocurrency ecosystem, any disappointing performance in ETF flows could plunge the crypto-driven Currency rally sentiment. This market sentiment will mainly appear in the second half of 2023, especially during the rally since October.
JPMorgan Chase pointed out that the price of Bitcoin has been under pressure, falling below $40,000. The bank believes that enthusiasm for cryptocurrency ETFs may further subside, resulting in lower currency prices, reduced trading volume, and sideline income opportunities for companies such as Coinbase. reduce.
The report added that if the Ethereum (ETH) spot ETF is approved, Coinbase is expected to assume similar custody, oversight and trading roles.
Peter Schif: Investors who buy Bitcoin spot ETFs “will experience worse outcomes”
Peter Schiff, an economist who has long criticized Bitcoin, is also not optimistic about Coinbase's subsequent performance. He said on the X platform that although Coinbase keeps the Bitcoin held by these ETFs, speculators who used to trade Bitcoin through Coinbase now Are switching to trading spot ETFs. Additionally, many investors who originally purchased $COIN as an alternative to Bitcoin are now purchasing these ETFs instead.
With the recent decline in the cryptocurrency market, Schiff continues to criticize Bitcoin and those who were publicly bullish on Bitcoin before the launch of spot ETFs, and believes that all Bitcoin spot ETFs are now in the midst of a bear market, which is a decline of 20% or more from their highs. .
Schiff also mentioned the first U.S. Bitcoin futures ETF "BITO" launched by ProShares in October 2021, saying that the product has fallen by more than 50% in more than two years. He believes investors who buy any of the 11 Bitcoin spot ETFs will experience worse outcomes.
