Coinbase Global Inc COIN CEO Brian Armstrong spoke about new ventures in Ethereum ETH/USD based products during a Thursday earnings call.
What Happened: He said, “We’ve been named as the custodian in 5 of the 8 ETH ETF applications.”
Coinbase reported a 45.2% jump in net revenue, hitting $905 million in the fourth quarter and exceeding the estimated $825 million. The quarter marked a turnaround to profit with a net income of $273 million, a stark contrast to the $2 million loss in the previous quarter and the first profitable quarter since Q4 2021.
Transactional activity was central to Coinbase’s income, with consumer crypto trading pulling in $493 million—a near doubling from the third quarter—and institutional transaction revenue increasing twofold to $36.7 million. The exchange processed over $29 billion in consumer trading volume, a 164% rise from the previous quarter.
Subscriptions and services also contributed notably to revenues, generating $375.4 million, a share of which was derived largely from stablecoin and blockchain rewards, amounting to $171.6 million and $95.1 million, respectively.
Armstrong added, “For anybody worried about cannibalization, ETFs have been positive for the industry, which has been additive for Coinbase. We’re seeing elevated engagement and net inflows across both retail and institutional Q1 to date.”
The cryptocurrency trading platform CEO said that more big financial organizations are starting to use cryptocurrencies. “Every institution is now starting to hold crypto, the asset class will be a standard part of every diversified portfolio. The financial system is officially adopting crypto. This is really good, and Coinbase is the most trusted partner here.”
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Why It Matters: Armstrong also said ETFs were a “win-win for Coinbase.”
“The Bitcoin ETFs are breaking records. And when gold launched in November 2004, it took one year to get to $3 billion. These ETFs did that in a few weeks. And so this is really an incredible start,” Armstrong noted.
Price Action: At the time of writing, Bitcoin was trading at $52,354, up 0.12% over the past 24 hours, as reported by Benzinga Pro. Coinbase shares were up approximately 150% over a one-year period heading into the print. The stock was up 8.41% after hours at $179.45 at the time of publication, according to Benzinga Pro.
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Image and article originally from www.benzinga.com. Read the original article here.