Bitcoin ETF may be ‘limited’ benefit to Coinbase stock: Barclays

Mike Novogratz expects the SEC to approve spot bitcoin ETFs this year. The Barclays analyst doesn't expect it to be a big gain for Coinbase. Coinbase stock is currently down more than 30% from its year-to-date high.

Mike Novogratz – CEO of Galaxy Investment Partners expects the Securities and Exchange Commission to approve the Spot Bitcoin ETF later this year.

Here's what Mike Novogratz said on CNBC today

Last week, US regulator Greyscale declined to appeal a court ruling, saying it did not have sufficient grounds to prevent it from converting the flagship trust into an exchange-traded fund.

Note that Galaxy itself has partnered with Invesco to offer a Spot Bitcoin ETF. On CNBC's “Squawk Box,” Novogratz said today:

Discussions with the SEC are moving in the right direction. It is no longer possible to say how Bitcoin works. It's just a recognized macro property and that's a huge psychological shift.

The billionaire investor expects positive news to boost the market in front of the ETF. Once again, Barclays is offering Coinbase Global Inc. He did not fully believe that it would be a material incentive.

A Barclays analyst shares his view on Coinbase stock.

Analyst Benjamin Buddish told clients in a research note on Wednesday that the approval of the Spot Bitcoin ETF could be of “limited” benefit to Coinbase.

It's unclear how a successful ETF launch will translate into P&L benefits for Coinbase, even if it's a valuable service provider.

The Nasdaq-listed firm has agreed to act as a custodian for (at least) four BTC exchange-traded funds, but says it is unlikely to incur high custodial and prime brokerage fees.

Barclays has an “underweight” rating on Coinbase stock and a price target of $70, implying a potential downside of 6.0%. Earlier this week, Kathy Wood – Founder of Arc Invest also took a positive vote on Spot Bitcoin ETF approval.