Coinbase ends trading session lower following downgrade

Quick Take

  • COIN ended Wednesday’s trading session down nearly 2%. 

Coinbase shares ended Wednesday lower by nearly 2%, despite a more bullish start to the week that was kicked off with headlines the exchange is partnering with several asset managers on new spot bitcoin exchange-traded funds awaiting approval from the U.S. Securities and Exchange Commission. 

The stock was trading down 1.98% to $78.35 per share at close, dragged down by a new downgrade from analysts at Piper Sandler. It has appreciated 133% since the beginning of the year. 

Source: TradingView

The exchange, which has pared losses since the SEC announced a lawsuit against the firm, still faces "too much uncertainty to prudently project revenues in future years," according to analyst Patrick Moley. Piper Sandler previously had an overweight position for the stock. 

Bloomberg News reported the downgrade earlier in the day. 

Coinbase faces lawsuit from SEC

The SEC alleged in June that Coinbase trades unregistered securities and operates a business that merges functions "that are typically separated in traditional securities markets."

Still, a wide-range of issuers, including asset management giant Fidelity, have identified Coinbase as a partner in their plans to launch a spot bitcoin ETF. BlackRock, which filed its spot bitcoin ETF on June 15, has picked the exchange as its custodian. 


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Frank Chaparro is Host of The Scoop podcast and Director of Special Projects. He also writes a biweekly newsletter. Chaparro started his career at Business Insider, where he specialized in the intersection of digital assets and Wall Street, market structure, and financial technology. Soon after joining Business Insider out of Fordham University, Chaparro was interviewing top finance and tech executives, including billionaire Mark Cuban, “Flash Boys” star Brad Katsuyama, Cboe Global Markets CEO Ed Tilly, and New York Stock Exchange President Tom Farley. In 2018, he become a sought after reporter in the crypto world, interviewing luminaries such as Tyler Winklevoss, the cofounder of Gemini, Jeremy Allaire, the CEO of Circle, and Fundstrat head Tom Lee. For inquiries or tips, email [email protected].

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