Waning Bitcoin ETF Hype to Drag on Coinbase, JPMorgan Says (2)

The biggest US cryptocurrency exchange could fall victim to a slump in Bitcoin and waning enthusiasm for exchange-traded funds that invest directly in the digital token, according to JPMorgan Chase & Co.

“We think the catalyst in Bitcoin ETFs that has pushed the ecosystem out of its winter will disappoint market participants,” analysts led by Kenneth Worthington wrote in a note on Monday, downgrading Coinbase Global Inc. to underweight from neutral.

Coinbase’s shares dropped 3.1% on Tuesday following the downgrade, which marks JPMorgan’s first sell-equivalent rating on the stock since initiating coverage in May 2021.

Coinbase shares ended 2023 ...