• Coinbase Shares Sink 9% on Report CME to Consider Listing Spot Bitcoin
• The stock was the second worst performing among crypto stocks on Thursday
• Coinbase is a leading cryptocurrency exchange platform
Coinbase’s stock was the second worst performing among crypto stocks on Thursday after a report said CME Group may list a spot bitcoin futures contract.
Details on Coinbase’s Stock Performance
- Coinbase shares closed down 9.3% at $58.22 on Thursday.
- The stock has lost around 45% over the past month as crypto prices plunged.
Background on Potential CME Spot Bitcoin Futures
- CME currently offers bitcoin futures contracts that are settled in cash.
- A spot bitcoin contract would be settled in bitcoin, allowing traders to more easily hedge other spot crypto positions.
- CME has discussed launching spot bitcoin futures for years but has yet to bring one to market.
Impact on Crypto Industry
- A spot bitcoin futures contract could pave the way for a bitcoin exchange-traded fund in the U.S.
- It may also boost institutional adoption and provide a benchmark derivatives contract.
- But some analysts say it may take time to gain traction given there are already futures and options contracts from competitors.
Reaction from Coinbase
- Coinbase CEO Brian Armstrong said last week that a spot bitcoin ETF would be an “important development” for the crypto industry.
- The company may stand to benefit from increased trading activity if such a product is launched.
Conclusion
The potential launch of a spot bitcoin futures contract by CME has added to recent volatility in crypto markets and weighed on Coinbase’s stock. While the product could be positive for institutional adoption long-term, the near-term impact remains uncertain.
