Big news for Coinbase (COIN) fans: Citi has upgraded the crypto exchange from “Neutral” to “Buy” and bumped up its price target from $260 to $345. This upgrade is happening just as the regulatory environment in the U.S. starts to look a lot more promising for cryptocurrencies.
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Regulatory Changes: A Silver Lining for Coinbase
According to Citi’s analysts, led by Peter Christiansen, Coinbase is in a great spot to benefit from the shifting regulatory landscape. The Supreme Court’s recent decision to overturn the Chevron Deference Doctrine and the upcoming presidential election are expected to make the regulatory scene friendlier for crypto. “Notwithstanding the increased turbulence in the upcoming U.S. elections, we believe the risk/reward setup for Coinbase… has improved markedly in the past few weeks,” Christiansen said in a recent report.
Crypto ETFs: A Potential Game Changer
On top of that, the launch of spot ether (ETH) exchange-traded funds (ETFs) in the U.S. later today could give Coinbase a nice boost. This new development is likely to drive up cryptocurrency adoption and open up more revenue opportunities for Coinbase through increased custody services. Citi’s report highlights that this could unlock more institutional investment and lead to exciting new collaborations in the crypto world.
What’s Next for Coinbase?
With Coinbase’s stock already up 52.46% this year, Citi thinks there’s still plenty of room for growth. The improving regulatory climate and new market developments could mean even bigger gains ahead. As the report suggests, the potential benefits of these changes are too significant to ignore.
