Low-cost spot bitcoin ETFs threaten to erode Coinbase margin, trading volume

CFRA Research downgraded Coinbase to "sell" from "hold", saying the exchange could be forced to cut its trading fees to remain competitive with low-cost ETFs.
The ease of accessing spot bitcoin ETFs via stock brokers such as Robinhood (HOOD.O), opens new tab that charge very low commissions was also likely to pressure Coinbase margins.
"This is likely to reset the bar lower for pure-play, over earning crypto exchanges like Coinbase," Mizuho analyst Dan Dolev said.