Coinbase's stock (COIN) is experiencing a surge in the stock market, reaching $128.27, its highest level in 2023. This current price surpasses the previous peak of $110.15 in July and corresponds to levels observed in May 2022, when spot Bitcoin last traded above $30,000.
Although still below the all-time high of $342.98 in November 2021, Coinbase's recent performance is gaining attention. The surge in stock price coincides with comments made by Coinbase CEO Brian Armstrong earlier in the week, stating that the settlement imposed on Binance by the US Department of Justice represents a turning point for the crypto industry.
Armstrong remarked, "The enforcement action against Binance, that’s allowing us to kind of turn the page on that and hopefully close that chapter of history." This positive sentiment, coupled with a broader bullish trend in the crypto market, has contributed to the recent surge in Coinbase's stock.
Over the past month, COIN has outperformed major assets like Bitcoin and Ethereum, achieving a gain of over 70%. This strong performance has led Cathie Wood's Ark Invest to rebalance its holdings for its ETFs focused on Bitcoin and crypto. Ark Invest recently sold $5.3 million worth of Coinbase shares while acquiring approximately $1.2 million in Robinhood shares.
As a result of this rebalancing, Coinbase and Robinhood now constitute 13% and 4%, respectively, of the ARK Fintech Innovation ETF portfolio. It's worth noting that Coinbase's stock performance often reflects the overall volatility in the crypto market. When crypto prices rise, COIN tends to benefit, and conversely, when prices decline, its shares follow suit. Investors are closely monitoring this recent outperformance of major crypto assets by Coinbase, recognizing its potential significance in the evolving landscape of the cryptocurrency industry.
