Breaking News: Major Upgrade for Leading Crypto Exchange as Bears Give In

Investment bank⁢ Raymond James ⁢has upgraded the stock of crypto exchange Coinbase (COIN) to⁣ market perform from underperform, citing the positive impact of spot bitcoin ETF flows on⁣ crypto valuations.⁣ This ​comes after Goldman Sachs also revised its‍ negative rating on the shares last week.

The upgraded rating by Raymond James reflects the recent⁤ rally in the stock and bitcoin, which has pushed the cryptocurrency ⁢to all-time highs. The firm admitted to underestimating the impact of spot ‍ETF inflows on cryptocurrency valuations, ‌particularly for bitcoin.

However, Raymond James maintains a⁢ cautious tone, stating ⁤that they still​ have doubts about Coinbase’s long-term earnings prospects. They believe that the firm’s client offering is essentially commoditized and ⁢that the earnings⁣ outlook for cryptocurrency valuations is largely premised on the “Greater Fool Theory” rather than ‍inherent value. ‍In addition, regulatory risk remains a⁣ significant factor.

The firm also warns that as⁤ the crypto rally continues, ⁤the likelihood of a competitor attacking Coinbase with a disruptive pricing strategy ⁢increases. Until ETF flows taper off or reverse, the stock is likely to continue its positive momentum.

Raymond James’s upgrade comes after⁣ Goldman Sachs also changed its stance on Coinbase shares, upgrading the​ stock to neutral from sell. This was also due‌ to higher crypto‍ prices​ and increased retail participation in the market.

It seems that the Wall Street investment banks are taking⁣ notice of the recent surge in the crypto market and are recognizing its potential. This is‍ a positive sign for Coinbase and the⁢ overall cryptocurrency industry.

As for the ⁤stock, Coinbase shares closed‍ 0.8%‌ higher at $256.14 after the upgrade. This shows that despite the positive outlook, investors are still cautious and keeping a close eye on the market.

Overall, the recent developments bode‍ well for the‍ future of‌ Coinbase and the⁣ cryptocurrency market. However, as with any market, there ​are​ still risks ‍and uncertainties⁤ that should be considered. Only time will tell how ​the market⁣ will continue to evolve and how Coinbase⁣ will handle any challenges that may arise.

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