JPMorgan Downgrades Coinbase to Neutral, Warns of Potential Disappointment in Bitcoin ETFs in 2024

JPMorgan has downgraded U.S. exchange Coinbase to neutral, stating that the launch of spot bitcoin exchange-traded funds (ETFs) that drove the crypto market's positive performance in 2023 could disappoint investors in 2024. Despite Coinbase's progress in important initiatives, the bank believes that 2024 could be more challenging for the exchange, which saw a 390% gain in its stock last year. The approval of spot bitcoin ETFs by the Securities and Exchange Commission (SEC) was expected to bring mainstream money into the cryptocurrency space, but JPMorgan warns that any disappointment with ETF fund flows could deflate the enthusiasm that has driven the cryptocurrency rally.