- Mike Novogratz expects the SEC to approve a Spot Bitcoin ETF this year.
- Barclays analysts do not expect this to be of much benefit to Coinbase.
- Coinbase stock is currently down more than 30% from its year-ago high.
Mike Novogratz, CEO of Galaxy Investment Partners, expects the Securities and Exchange Commission to approve a spot Bitcoin ETF by the end of this year.
Here’s what Mike Novogratz said on CNBC today:
Last week, U.S. regulators refrained from appealing a court ruling that found there was no sufficient reason to prevent Grayscale from converting its flagship trust into an exchange-traded fund.
Galaxy itself has teamed up with Invesco to apply for a Spot Bitcoin ETF. Speaking on CNBC’s “Squawk Box” today, Novogratz said:
Talks with Samsung Electronics are heading in the right direction. We are no longer talking about how Bitcoin works. It’s just a perceived macro asset, and that’s a huge psychological shift.
The billionaire investor expects positive news on the ETF front to drive markets higher. Still, Barclays isn’t entirely confident this will be a material catalyst for Coinbase Global Inc.
Barclays analyst shares his view on Coinbase stock.
Analyst Benjamin Budish told clients in a research note today Wednesday that the approval of the Spot Bitcoin ETF would likely be of “limited” benefit to Coinbase.
It’s unclear how a successful ETF launch will translate into meaningful P&L benefits for Coinbase, despite being an integrated service provider.
He agreed that the Nasdaq-listed company would act as custodian for (at least) four BTC exchange-traded funds, but said it was unlikely it would collect significant custody and prime brokerage fees.
Barclays has an “underweight” rating on Coinbase stock and a $70 price target, suggesting a further downside of 6.0% from here. Earlier this week, Ark Invest founder Cathie Wood also took a positive stance on the Spot Bitcoin ETF approval.