Common cases It’s the best performer S&P 500 June was included in mid-June by active regulatory updates, product launches, and benchmark stock indexes at the end of May.
Crypto Exchange’s performance in the S&P 500 S&P 500 S&P 500 will extend to the April 8 market after President Donald Trump’s initial broad tariff announcement sank stocks.
Coinbase’s third monthly earnings are now at pace, with 44% in June alone and the first three-month gathering since the end of 2023. On Thursday, the stock reached its highest level since its initial public offering in 2021.
“this S&P 500 Indexthis The Senate passed the Genius Act and Very strong performance of Circle Oppenheimer analyst Owen Lau told CNBC that it negated the false narrative that Coinbase and people are waking up.
Restrictions Cancel
“The two things that hold Coinbase are the issue of charging compression – this hasn’t happened, and in fact, Coinbase has been continuously generating positive revenue, which is why they are included in the S&P 500 and regulatory uncertainty,” he said. “Many people don’t think there will be any consensus in Congress…the fact is that we’ve seen the passage of the Genius Act.”
Genius Law Establish the first federal framework for US dollar fixed stabilitygranting full power to the Ministry of Finance and opening the door to banks, fintech and retailers.
Devin Ryan, head of financial technology research at Citizens JMP Securities, said the stock could be further appreciated even if Coinbase runs 44% this month. He said the market does not fully connect Coinbase with the Circle Internet Group. Circle made its debut on the New York Stock Exchange on June 5 and has been soaring more than 500% since then.
Coinbase retains 100% of all revenues under the Income Share Agreement USDC Ryan said nearly 50% of revenue on Coinbase and all other USDCs, “that’s 99% of Circle’s current revenue.”
USDC is a stablecoin issued by circles, which is a subset of cryptocurrencies pegged to the value of real-world assets. about 99% of all stablecoins Being bound to the price of US dollars.
Another way to play
“However, Coinbase does not incur any operating costs that Circle bears,” Ryan said. “If the market is right on the current bullish view of Circle, then Coinbase is another way to play this goal – and through the financial links described, Coinbase seems to have more value left.”
Coinbase’s core business is cryptocurrency trading, which has been expanding its suite of crypto services in the past few quarters, including custody, and more. betWallet Services and Stablecoins.
This month, the company strengthened its subscription plans by offering them to The first encryption-supported credit card and American Express. It also has Shopping And for the first time, Stablecoin payment service was launched for e-commerce. Morgan Also working with cryptocurrency companies Start your own stablecoin versionit is called the “sedification order” on the blockchain base built inside Coinbase.
“Obviously, since institutional investors are looking at the space, it’s clearly an emotional trade that’s happening, for the first time, and wants to express a positive view on the development of cryptocurrencies from speculative asset classes to utilities and use legislative clarity as an important catalyst, and Coinbase is the most direct way to invest in the paper,” Ryan said. ”
Quantity attention
If there is one problem, it is trading volume, Oppenheimer’s Lau said. The average daily number of crypto transactions on the Coinbase platform has been declining since April, which could be a risk for companies and other cryptocurrency trading providers to enter the second half of the year.
Analysts are optimistic, but the regulatory outlook can turn things around, especially if the industry gets market structure legislation on top of Stablecoin legislation.
“If the Genius Act brings us to the Stablecoin Summer, then I believe the final Clarity Act can bring us to the Altcoin Summer,” Law said. “So at the end of this year, I did see another catalyst that could reverse that trend because there would be animal spirits, and if we go beyond the market structure bill, people would buy altcoins.”
