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Coinbase Downgraded To ‘Underweight:’ JPMorgan Analysts Blame Regulatory Risks, ETF Letdown

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JPMorgan downgraded cryptocurrency exchange Coinbase (NASDAQ: COIN) to ‘Underweight’ while maintaining an $80 price target.

The revised stance follows an “underwhelming” start to Spot Bitcoin ETF trading.

What Happened: JPMorgan analysts, led by Kenneth B. Worthington, “see Coinbase as both a leading driver and beneficiary of the cryptocurrency economy.”

A lackluster entry of Bitcoin ETFs into the market, however, suggests potential headwinds for the company.

“Coinbase is making investments in the buildout of its derivative platform and Layer-2 Base chain,” states JPMorgan, acknowledging the company’s initiatives to diversify and innovate.

The report also juxtaposes these positives with the reality of a “highly-competitive and costly” international landscape and Binance as the main competitor.

It also underscores the Bitcoin ETFs as …

Full story available on Benzinga.com

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