Shares of Coinbase (COIN), America's largest cryptocurrency exchange, have reached their highest price since before the collapse of Terra in May 2022. Currently trading at $115.75 per share, COIN has seen a nearly 6% increase in the past day and has even touched $117 per share on Friday. Over the past month, COIN has experienced a significant surge of over 41% from its trading price of $82 per share. This recent price level brings COIN back to where it was in May 2022, before the collapse of the popular crypto ecosystem, Terra, which caused a bear market and bankruptcy declarations for many projects with exposure to Terra. Despite the struggles of most digital coins and tokens, including Bitcoin and Ethereum, to regain their pre-Terra prices, today's market shows signs of a comeback. Bitcoin, the top digital coin by market cap, surged past $38,000, while Ethereum nearly touched $2,131 on Friday.
Coinbase's Rising Attention
One possible reason for the rising attention on Coinbase is the selection of the company by several high-profile Wall Street firms to be its custodian or surveillance sharing partner for their respective spot Bitcoin exchange-traded fund (ETF) applications. BlackRock, the world's largest fund manager, and Fidelity are among the firms interested in using Coinbase for this long-awaited investment product. A Bitcoin ETF would provide traditional investors with exposure to crypto through shares that track the price of the digital asset. Currently, the U.S. Securities and Exchange Commission is reviewing multiple applications for such a product, which further highlights the growing interest in cryptocurrencies and the potential for wider adoption in traditional finance.
In Summary
Despite the challenges faced by the cryptocurrency market following the collapse of Terra, Coinbase has managed to regain its pre-Terra price levels, demonstrating its resilience in the industry. The recent surge in COIN's price can be attributed to the renewed interest in cryptocurrencies, as evidenced by the increasing attention from major Wall Street firms looking to offer Bitcoin ETFs. As the SEC reviews these applications, the potential for traditional investors to gain exposure to crypto through regulated investment products could further boost the market's growth. Overall, Coinbase's performance and partnerships position the company as a key player in the evolving landscape of digital assets and their integration into mainstream finance.
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