The recent Coinbase State of Crypto Summit highlighted a positive sentiment about the crypto industry. Analysts believe that positive momentum is growing across the crypto ecosystem and that more money is coming. The summit, held in NYC, focused on increased institutional interest in crypto, generating a bullish sentiment on Bitcoin and digital assets.
Spot BTC ETFs have seen significant growth, accumulating over $15 billion in total net inflows and managing approximately $63.5 billion in assets, making them the fastest-growing ETF class in history. Coinbase acts as the custodian for about 90% of these assets. The analysts anticipate a surge of institutional inflows when large wealth platforms approve BTC ETFs.
Moreover, it is projected that over $70 trillion in wealth will shift to younger investors – millennials and Gen Z – who are more inclined to invest in crypto than the older generation. Stablecoins settled $10 trillion in total volume in 2023, surpassing the total transaction volume of the second largest payment network in the world, Mastercard. Additionally, a recent survey by Coinbase found that 56% of Fortune 500 companies are actively working on blockchain projects.
The world’s largest asset manager, BlackRock, has tokenized real-world assets on the Ethereum blockchain. The BlackRock USD Institutional Digital Liquidity Fund holds $382M in AUM. Based on these factors, H.C. Wainwright analysts are optimistic that clear and thoughtful regulation in the U.S. will positively impact crypto prices and trading volumes.
They believe such regulation will attract institutional investors who have been hesitant due to the lack of clarity. Thus, the analysts reiterated their “Buy” rating for Coinbase Global, Inc. COIN is currently trading at $238.18.