What Wall Street thinks about crypto #CriptoNews

00:00 Speaker A

All right, Coinbase set to join the S&P 500, replacing Discover Financial Services, which is being acquired by Capital One. For more, we are now joined by Yahoo Finance’s senior markets reporter, Ines Ferre. Ines.

00:13 Ines to carry

Yeah, guys. And this is a company that really went from being in the crosshairs of the SEC under the Biden administration. And now, uh, going into the S&P 500 set to start that on May 19th, uh, a poster child now for what’s happening in the crypto space because this is the first company and only crypto company to be included in the S&P 500. And this is not lost on anyone in the crypto world, certainly not lost on management. Bernstein analysts also, uh, talking about this. They initiated, uh, Coinbase with a buy rating back in March and a $310 price target. And what these analysts are pointing out is this really dramatic turnaround when it comes to the company and the crypto industry. This turnaround where they’re saying that the Trump administration’s aspiration to make America the crypto capital of the world will be very beneficial for Coinbase. That Coinbase remains a dominant player. They’ve got 66% of the market. Uh, talking about the amount of users that they have as well, uh, on their platform. Uh, and even though you may have some Coinbase bears that are talking about rising competition and fee pressures, the fact that you have these initiatives within the crypto, uh, environment within the crypto industry under this, uh, under the Trump administration is really, uh, so bullish for this company. If we take a look, I’ve got the, uh, the touchscreen up right now. If we take a look at where the stock is, today, you’re seeing that it’s up 25%, uh, percent intraday, but year-to-date, uh, Coinbase is up only 4%. But remember that this stock touched all-time highs, uh, back in last year, late last year. It really soared after the Trump, uh, administration, after Trump was elected. And from the April 8th bottom, you’re looking at a rally of 52% for Coinbase. I was talking also earlier to David Hollerith about this, and he was just pointing out that this really gives a credibility check when it comes to crypto. And the fact that you will have now your average American that is somewhat exposed if they’ve got an S&P 500 ETF because of that exposure. Um, look, MicroStrategy is in the S&P 500, but remember, this is MicroStrategy is Bitcoin. Uh, they really talk about, I mean, their whole thing is Bitcoin, but with Coinbase, you’re talking about the crypto world in general.

04:56 Speaker A

Yeah, really interesting move. Thanks, Ines. Appreciate it.