JMP Securities analysts have upped their price target for Coinbase (NASDAQ:COIN) to $300, a significant increase from the previous $200, attributing it to the anticipated surge in inflows into spot Bitcoin exchange-traded funds (ETFs).
“We anticipate $220 billion of inflows into spot-Bitcoin ETFs over the next three years, which far exceeds previous levels. Coinbase stands to benefit greatly if our projections hold true,” stated the analysts.
Despite the bullish forecast, analysts have maintained a Market Outperform rating on the stock.
JMP Securities initially expressed optimism regarding the potential impact of a spot-Bitcoin ETF on the crypto market and Coinbase’s positioning within it back in December 2023.
Contrary to popular belief suggesting that such an ETF would negatively impact exchanges like COIN, JMP foresaw a positive outcome. They argued that this perception overlooked Coinbase’s unique position and evolving business model within the broader crypto ecosystem.
Furthermore, analysts believe that the current activity and inflows into Bitcoin ETFs represent just the beginning. They predict continued substantial growth in inflows over the next few years, considering ETF approval as merely the initial step in a longer capital allocation process.
In this context, JMP views Coinbase, along with a select group of peers, as poised to reap significant benefits from the influx of capital into the industry.
With only a handful of firms possessing the requisite technical expertise and scale to facilitate entry and success for others in the digital asset space, JMP analysts perceive Coinbase as well-positioned to capitalize on various growth opportunities in an industry slated for exponential growth over the next decade.
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