Coinbase Global Inc COIN, the U.S.-based cryptocurrency exchange, reported that its trading volume doubled in the fourth quarter compared to the third quarter, totaling $154 billion.
What Happened: During an earnings call on Thursday, Armstrong said ETFs were a “win-win for Coinbase."
The Coinbase CEO added, "So in preparation for this launch, we won eight of 11 Spot Bitcoin BTC/USD custody mandates from issuers. And today, Coinbase custody is about 90% of the 36 billion in Bitcoin ETF assets as a result. So across the entire industry, we’ve seen over $4 billion of net inflows into Spot Bitcoin ETFs."
Coinbase reported earnings for the fourth quarter that outpaced what experts had anticipated, thanks to an increase in crypto prices. "We are earning revenue, not just on custody, but also on trading and financing. We’ve already seen great demand as Bitcoin is now the second largest ETF commodity in the U.S., surpassing silver. All of these improvements will continue to grow phase one, crypto as a new asset class," Armstrong said.
The company disclosed earnings of $1.04 per share, which was higher than the consensus estimate of just $0.02 per share from analysts, based on FactSet data. Their revenue reached $953.8 million, surpassing the analysts’ projections of $826.1 million, as stated in their press release.
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Why It Matters: The optimism around newly approved Bitcoin ETFs played a significant role in boosting the appeal of cryptocurrencies.
"The Bitcoin ETFs are breaking records. And when gold launched in November 2004, it took one year to get to $3 billion. These ETFs did that in a few weeks. And so this is really an incredible start," Armstrong noted.
On the regulatory landscape and Coinbase’s involvement, Armstrong said, “In the U.S., there are even two bills going through Congress now with strong bipartisan support… Coinbase, along with other players in the crypto space, contributed to an $85 million Super PAC designed to elect pro-crypto candidates in this upcoming U.S. election.”
Price Action: At the time of writing, Bitcoin was trading at $52,354, up 0.12% over the past 24 hours, as reported by Benzinga Pro.
Coinbase shares were up approximately 150% over a one-year period heading into the print. The stock was up 8.41% after hours at $179.45 at the time of publication, according to Benzinga Pro.
Photo by Useacoin on Shutterstock
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