Coinbase Outperforms Bitcoin in 2023

In a striking development for 2023, shares of the cryptocurrency exchange Coinbase, trading under the ticker COIN, have significantly outpaced Bitcoin in terms of year-to-date growth. Currently, Coinbase’s stock is trading at an impressive $143, marking the highest point it has reached this year. This represents a substantial 304% increase since the beginning of the year, compared to Bitcoin’s 164% rise in the same period.

Coinbase’s stock value has surpassed its previous 2023 peak of $110.15, recorded in July, and is now at levels last seen in April 2022, when Bitcoin was trading above $30,000. Despite this surge, Coinbase’s stock is still below its all-time high of $342.98, set in November 2021, but its recent performance remains significant.

This upward trend in Coinbase’s stock follows remarks from CEO Brian Armstrong, who earlier this week commented on the U.S. Department of Justice’s settlement with Binance. Armstrong suggested that this development could represent a turning point for the cryptocurrency sector, hoping to leave behind a challenging chapter in crypto history.

Moreover, the rise in Coinbase’s stock price coincides with an overall bullish sentiment in the broader cryptocurrency market. Over the past month, COIN has notably outperformed major cryptocurrencies like Bitcoin and Ethereum, witnessing over a 70% increase in value.

This outperformance by COIN has led Cathie Wood’s Ark Invest to adjust its investment strategy in its exchange-traded funds (ETFs) focused on Bitcoin and cryptocurrencies. Ark Invest recently sold $5.3 million worth of Coinbase shares while purchasing about $1.2 million in Robinhood shares. Following this rebalancing, Coinbase and Robinhood now make up 13% and 4%, respectively, of the ARK Fintech Innovation ETF portfolio.

Coinbase’s stock performance has historically mirrored the crypto market’s volatility, typically benefiting from rises in crypto prices and declining when they fall. With COIN currently outperforming major crypto assets, investors are keenly observing its trajectory, given its close correlation with the broader crypto market trends.