Mizuho Securities Negative on Coinbase Global Inc. (COIN) Crypto Futures: 'cannibalization risk'
- Futures signal further losses on Wall St ahead of jobs data
- Oil prices rise on uncertainty over OPEC+ cuts and Middle East tensions
- Euro zone yields fall, stock rally takes a breather
- GitLab jumps 15% following Q3 beat & guidance raise; Seen as a 'good quarter'
- Nokia tumbles on lowered outlook as AT&T decides to award $14B contract to Ericsson
Mizuho Securities analyst Dan Dolev reiterated an Underperform rating and $27.00 price target on Coinbase Global Inc. (NASDAQ: COIN).
The analyst comments "Bloomberg reported that COIN obtained approval from the National Futures Association (NFA) to sell crypto derivatives directly to retail traders in the US. Since the global crypto derivatives market can be 3-4x larger than spot, this approval increases COIN's TAM. However, we have the following concerns: (1) There may be cannibalization risk, as COIN already has a derivatives exchange. (2) Trading value will likely decline given the leverage associated with getting exposure to crypto via derivatives. (3) Futures pricing may drive take rate compression given lower fees for future trading vs. spot."
Shares of Coinbase Global Inc. closed at $79.18 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Midday movers: Uber, Spotify and more
- Ideaya Biosciences (IDYA) Mentioned Positively at Citi, 'developing into an attractive takeout candidate'
- NIO (NIO) Mentioned Mixed at Morgan Stanley, 'stock will likely stay volatile'
Create E-mail Alert Related CategoriesAnalyst Comments, Cryptocurrency, Hot Comments
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!