The US-based cryptocurrency exchange Coinbase has witnessed a significant period in 2023, with its publicly traded stock, COIN, soaring by 400%, continuing to please investors. The optimism surrounding the potential approval of spot Bitcoin ETF applications has been beneficial for many companies in the sector.
Data from TradingView indicates that Coinbase, one of the largest crypto trading platforms in the US, has reached its highest level in 20 months this week. While Coinbase and Bitcoin have both seen a rise in 2023, the exchange’s performance is increasingly standing out in its own right as the year-end approaches.
Investors are counting down to the potential approval of the first US spot Bitcoin ETF, expressing belief in a further upward trajectory for the crypto market led by Bitcoin. This anticipation has been a driving factor in the market’s momentum.
Even compared to the ‘altcoin king’ Ethereum, Coinbase has outperformed with the ETH/USD pair increasing by approximately 85% since the start of the year. However, investment giant ARK Invest, among others, continues to reduce its risk exposure as COIN rises.
According to data on ARK CEO Cathie Wood’s official website, ARK Innovation ETF’s COIN holdings dropped by about 11% in December alone. Despite being one of ARKK’s largest investments, COIN continues to trade significantly below its total cost base of just under $255.
Coinbase CEO Brian Armstrong remains optimistic about the crypto market’s direction, believing it to be upwards for 2024. Recently, the firm joined several US crypto players in a campaign to raise about $80 million in donations to support crypto-friendly US presidential candidates. Armstrong highlighted the importance of making people aware that being anti-crypto is bad policy in Washington DC and mentioned the regulatory hurdles, including the SEC’s refusal to collaborate on rule-making for ETF applications. He believes Coinbase will play a role across all aspects of the value chain in a post-ETF environment.