iShares Bitcoin Trust ETF, Fidelity Wise Origin Bitcoin ETF, ARK 21 Shares Bitcoin ETF, MicroStrategy and Coinbase Global

On December 5, 2024By Littum

Chicago, IL – December 4, 2024 – Today, Zacks Investment Ideas highlights iShares Bitcoin Trust ETF IBIT, Fidelity Wise Origin Bitcoin ETF FBTC, ARK 21 Shares Bitcoin ETF ARKB, MicroStrategy MSTR and Coinbase Global COIN.

Zacks Rank #2 (Buy) stock Coinbase Global operates the largest crypto exchange in the US by trading volume. Coinbase benefits from global crypto adoption with its widespread sweet of unique crypto offerings.

After COIN debuted during the “crypto winter” of 2021, stocks suffered from falling crypto prices and the death of its biggest competitor, FTX. However, the company’s stock and fundamental rebound quickly amid widespread global crypto adoption, innovations and a robust balance sheet. Below are some reasons why the momentum in Coinbase will continue.

A major roadblock in the crypto industry has been converting fiat currency to crypto seamlessly. On Monday, Coinbase announced an initiative to smooth the process. The Coinbase website wrote: “Today we are excited to announce the launch of ApplePay for all fiat-to-crypto purchases via Coinbase Onramp, the easiest tool to build onramps into your existing products.”

Earlier this year, Coinbase also announced a strategic partnership with payments giant Stripe to “expand global adoption.” The Stripe and Apple deals represent a watershed moment for Coinbase, which appears to be the de facto choice for legacy payments giants. These agreements put COIN in the voting position to benefit from further global crypto adoption.

Coinbase is arguably benefiting more from Donald Trump’s presidential victory than any other stock on Wall Street. President-elect Trump announced during his campaign that he plans to fire securities and exchange chief Gary Gensler on day one. Gensler has been enemy number one of COIN because he has failed to provide regulatory clarity to Coinbase on whether certain assets should be treated as securities or commodities.

Although Trump has yet to step foot back in the White House, investors are bidding on “alt coins” with a vengeance in an attempt to price the future. For example, Ripple, a crypto locked in legal battles for years, is up more than 300% since the election.

The robust price action and amount of volume are key catalysts for Coinbase, which charges hefty commissions ranging between 0.5% and 4.5% depending on the coin.

So far, the performance and flow into Bitcoin ETFs such as iShares Bitcoin Trust ETF, Fidelity Wise Origin Bitcoin ETF and ARK 21 Shares Bitcoin ETF has been unprecedented. The company benefits because Coinbase acts as the custodian service for most crypto ETFs. Meanwhile, COIN could benefit further as public companies look to mirror MicroStrategy’s wildly successful “Bitcoin Standard.”

After breaking out on Election Day, COIN stocks are collapsing in a picture-perfect bull flag pattern. Meanwhile, heavy-handed, long-term buyers of call options continue to enter the market, lending credence to the current chart pattern.

Coinbase boasts a sparkling balance sheet and a growing cash balance despite the crypto industry’s “Wild West” reputation.

Coinbase is the true market leader in the crypto industry. The stock should benefit from global crypto adoption, strategic partnerships and a strong balance sheet.

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