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<p>The post <a href="https://coinpedia.org/news/jpmorgan-downgrades-coinbase-amid-concerns-over-spot-bitcoin-etf-impact/">JPMorgan Sounds Alarm on Bitcoin ETFs: Coinbase Faces 38% Downgrade</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>In a surprising move, <a href="https://coinpedia.org/news/jpmorgans-bold-prediction-ethereum-to-outshine-bitcoin-in-upcoming-year/">JPMorgan Chase &amp; Co.</a> has downgraded Coinbase Global Inc., expressing reservations about the U.S. market’s readiness for the recently approved spot <a href="https://coinpedia.org/news/bitcoin-btc-price-drops-nearly-20-post-etf-launch-should-you-buy-the-dip/">Bitcoin exchange-traded funds (ETFs).</a></p> 
<p>Was the USA really not ready for such a massive financial instrument? Let’s dig in deep to understand this hot new take. </p> 
<h2 class="wp-block-heading" id="h-markets-at-a-crossroads">Markets at a Crossroads</h2> 
<p>JPMorgan, a financial powerhouse, has shifted its stance on <a href="https://coinpedia.org/news/ripples-head-lawyer-exposes-flaws-in-coinbase-vs-sec/">Coinbase</a>, moving from a ‘neutral’ to an ‘underweight’ rating. Despite Coinbase’s impressive profits in the previous year, the bank foresees challenges in 2024, and its lead analyst, Kenneth Worthington, also points to potential headwinds for the popular cryptocurrency exchange.</p> 
<blockquote class="wp-block-quote"> 
 <p><em>“While we continue to see Coinbase as the dominant U.S. exchange in the crypto ecosystem and a leader in cryptocurrency trading and investing globally, we think the catalyst in bitcoin ETFs that pushed the ecosystem out of its winter will disappoint market participants.”&nbsp;</em></p> <cite>Kenneth Worthington</cite>
</blockquote> 
<h2 class="wp-block-heading" id="h-a-bleak-forecast">A Bleak Forecast</h2> 
<p>Keeping an eye on the horizon, JPMorgan maintains a price target of $80 on Coinbase stock, signaling a projected 38% drop over the next 12 months. This downgrade is a notable departure from the bank’s more optimistic coverage initiated in May 2021. Following this development, Coinbase shares experienced a 4.1% dip, settling at $122.90 in pre-market trading.</p> 
<p>Read More: <a href="https://coinpedia.org/news/coinbase-vs-sec-is-dismissal-on-the-cards-heres-what-to-expect/">Coinbase vs. SEC: Is Dismissal on the Cards? Here’s What To Expect</a></p> 
<h2 class="wp-block-heading" id="h-a-threat-to-the-market-at-large">A Threat to the Market at Large?!</h2> 
<p>The Securities and Exchange Commission’s (SEC) approval, initially anticipated to attract mainstream investment, now raises concerns within the bank. JPMorgan fears that any disappointment in ETF fund flows could trigger a decline in overall market sentiment. In a Monday report, Worthington notes the possible consequences: “lower token prices, lower trading volume, and lower ancillary revenue” opportunities for platforms like Coinbase.</p> 
<p><strong>…but others differ</strong></p> 
<p>Despite JPMorgan’s bearish sentiment, investment firm Wedbush takes a more optimistic view. Wedbush’s recent report from January 11 suggests that Coinbase is most likely to benefit from the SEC’s approval of spot Bitcoin ETFs.&nbsp;</p> 
<p>Read More: <a href="https://coinpedia.org/news/weekly-spot-bitcoin-etf-report-insights-after-its-first-trading-week/">Weekly Spot Bitcoin ETF Report: Insights After Its First Trading Week</a></p>

JPMorgan Sounds Alarm on Bitcoin ETFs: Coinbase Faces 38% Downgrade

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