Bitcoin (BTC-USD) has fallen since the approval of the Spot Bitcoin ETF. Over the past month, billions of dollars have flowed into financial firms that offer ETFs. Popular cryptocurrency exchange Coinbase (COIN) has become a mainstay for crypto trading, with its stock price up 50% since the beginning of the year.
Citizens JMP Financial Technology Research Director Devin Ryan joins Yahoo Finance to discuss the compelling rise case for crypto exchanges.
Ryan highlighted the opportunity that exists with Coinbase, calling it a “gateway” to the asset class: “We are calling Coinbase the Amazon (AMZN) of cryptocurrencies, which is a bit of a cliché. And what I mean is, they started buying and selling as an exchange; in fact, that was their first foray into cryptocurrencies, which were becoming more and more commoditized. Exchange platforms will continue to grow significantly, but Coinbase is actually a major entrant into cryptocurrencies, making it easier for people to make payments, send money, or in our opinion tokenize real-world assets. If you want to be involved in Web 3, they have their own blockchain called Base, and you'll be involved in virtually every aspect of how this industry grows, and in our opinion. There will be a crypto-specific part of this industry.”
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Editor's note: This article was written by Nicholas Jacobino