Beam: Ethereum spot ETF is good for Coinbase! Will push up COIN stock price

This site (120btC.coM): The news that the Ethereum spot ETF will be approved by the SEC in the near future is rampant. Snow, the chief financial officer of the crypto payment company Beam, put forward six reasons to remind everyone that Ethereum The launch of the spot ETF will benefit cryptocurrency exchange Coinbase. And said that he has bought COIN and CONL (twice long COIN's ETF).

Six Reasons to Be Optimistic about Coinbase

Snow, the chief financial officer of Beam, a crypto payment company, proposed six reasons to support the launch of an Ethereum spot ETF that will benefit the cryptocurrency exchange Coinbase.

• Increased volatility

When the market becomes more volatile, more users come to trade, and the trading volume drives up fee income. At the same time, the increase in the price of crypto assets can generate more income when converted into U.S. dollars. The correlation between volatility and crypto market capitalization can be seen in the chart below.

• Blockchain rewards increase

ETH is the main driver of Coinbase blockchain reward revenue , revenue in the first quarter was $151 million, while the average price of ETH in the first quarter was approximately $2,920.

In addition, the narrative of ETF may push up the price of ETH, so whether it is an increase in trading volume or currency price, it will be beneficial to the growth of Coinbase's revenue.

• Softening of legal issues

Coinbase has been actively pursued by the SEC, and if the SEC approves an Ethereum spot ETF, it will meaningfully weaken or soften it Their stance on Coinbase. If ETH is not a security, this will also set a precedent for other similar tokens.

• Custody services will be added

Just like Coinbase is responsible for the custody business of Bitcoin spot ETF, if the Ethereum spot ETF is listed, Coinbase will will benefit again.

• The BASE ecosystem will be a direct beneficiary

If the Ethereum spot ETF starts running, users and capital will eventually enter what Coinbase has built BASE ecosystem. Coinbase can "drive" their users through smart wallets, Magic Spend, etc., bringing in more users and transactions.

• USDC market value will increase

Similar to BASE, the capital inflow system will drive demand for USDC, plus Circle is likely to IPO this year Listed, this will attract attention.

Note: Coinbase officially took a stake in stablecoin issuer Circle in August last year.

COIN stock price held steady at $200

Coinbase stock price bottomed out in the fourth quarter of last year and benefited from the rise in Bitcoin spot ETFs and Bitcoin prices. In the first quarter of this year, it generated revenue of US$1.6 billion and net profit of more than US$1.1 billion.

Snow also bought COIN and CONL (two times long COIN ETF) based on the reason of being bullish on Coinbase.

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