Key Takeaways
- Coinbase shares took off along with the price of Bitcoin, and as the exchange benefited from a legal settlement by larger rival, Binance.
- Bitcoin traded above $38,000 for a short period today, the highest its been this year.
- Analysts have suggested the Binance settlement could speed up U.S. regulatory approval of a Bitcoin exchange-traded fund (ETF).
Coinbase Global (COIN) shares jumped as biitcoin (BTCUSD) traded at a 2023 high, and it appeared the firm has benefited from the recent legal problems for the world’s largest crypto exchange, Binance.
Data analyzed by on-chain research firm CryptoQuant reported by Coindesk suggests that Coinbase’s reserves of bitcoin have jumped recently, while they’ve declined at Binance.
Earlier this week, Binance pleaded guilty to federal charges of money laundering. The company agreed to pay $4.3 billion in penalties, and founder and CEO Changpeng Zhao, known as CZ, also pleaded guilty and said he would step down.
Analysts indicated that another potential benefit to Coinbase is that the Binance legal decision may help pave the way for U.S. regulators to approve a Bitcoin exchange-traded fund (ETF).
Bitcoin traded above $38,000 for a short period before giving up some ground. It remained in positive territory at midday.
Shares of Coinbase Global were at their highest level since April 2022.
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