Investors didn’t waste any time on Monday, continuing to push the stock market higher, building on gains from the past week.
With the crypto exchange giant finally starting to see some more excitement return to the Bitcoin market, Coinbase has jumped to its best levels since right after its IPO, and many are hoping that it can continue to build on its recent gains.
ProShares Bitcoin Strategy ETF focuses on Bitcoin futures contracts, choosing not to take direct custody of Bitcoin itself in favor of relying on derivative securities.
Yet Coinbase has been working hard to defend its business model and demonstrate its superiority.
Again, even though Bakkt is arguably a direct competitor to Coinbase, investors seem quite happy with the progress that the crypto industry has made in persuading mainstream financial giants to move forward with cryptocurrency adoption.
Even with the roughly $100-per-share gains that Coinbase has enjoyed since the beginning of October, the stock remains well below its highs.
In the near term, Coinbase will indeed have to demonstrate that its trading platform is viable and can generate sustainable fee income.
To succeed, Coinbase will have to keep innovating, and that could mean that the company will have to spend more on research and development in order to stay ahead.