JPMorgan Says Coinbase Now Neutral

JPMorgan has revised its stance on Coinbase (COIN), upgrading the cryptocurrency exchange from "Underweight" to "Neutral" with a price target (PT) of $80. 

This adjustment comes after a period of skepticism from the financial giant, concerning the surge in Bitcoin prices driven by the influx of new investments through U.S. spot Bitcoin exchange-traded funds (ETFs). 

Initially, the launch of these ETFs was met with a sell-off, but it soon translated into significant appreciation for Bitcoin's value, as noted by JPMorgan.

ARK Invest adjusts its Coinbase holdings

Amid these developments, ARK Invest, led by Cathie Wood, sold $34.3 million worth of Coinbase shares across three different funds. 

This move marked the first sale of Coinbase stock by ARK in a month, taking place just a day before Coinbase was scheduled to report its fourth-quarter earnings. 

Despite this sale, Coinbase's stock has seen an impressive rally that has been bolstered by a broader rally in the cryptocurrency market that has notably lifted Bitcoin above the $52,000 mark. 

Closer look at Coinbase's position

Coinbase is preparing to unveil its earnings later today, and the platform finds itself in a favorable position, riding the wave of rising cryptocurrency values.

However, the shadow of regulatory challenges looms large over the exchange. 

Analysts project that Coinbase will report modest earnings, reflecting the company's resilience and adaptability on a volatile market. 

The expected earnings come after a year of significant growth for Coinbase. This growth is largely attributed to the increasing mainstream acceptance of cryptocurrencies, further accelerated by the approval of spot Bitcoin ETFs. 

These ETFs simplify the process of investing in Bitcoin, eliminating the need for technical knowledge of crypto wallets and private keys, thus potentially opening up the market to a wider range of investors.