ETFs In Focus As Coinbase Q3 Loss Narrows, Trading Volume Dips


The second-largest cryptocurrency platform, Coinbase Global (COIN) reported solid third-quarter earnings on Nov 2 after the closing bell. It topped estimates on both earnings and revenues but trading volumes fell. Shares of COIN, however, dropped as much as 5.5% in after-market hours on waning trading volumes.Given this, ETFs having the largest exposure to this U.S. cryptocurrency exchange are in focus. These include First Trust SkyBridge Crypto Industry & Digital Economy ETFFidelity Crypto Industry and Digital Payments ETFGlobal X Blockchain ETFiShares Blockchain and Tech ETF, and ARK Fintech Innovation ETF.Adjusted loss per share came in at 1 cent, much better than the Zacks Consensus Estimate of a loss of 54 cents. This represents the seventh consecutive quarter of losses. Revenues climbed 15% year over year to $674 million and edged past the estimated $657 million.Trading volume dropped to $76 billion from $92 billion in the previous quarter and $459 billion in the year-ago quarter. The decline was attributed to the continued decrease in crypto asset volatility, reaching levels not seen since 2016 (read: 5 ETFs at the Forefront of Bitcoin’s Thrilling Ascent).Third-quarter transaction revenues were $288.6 million, down 12% from $327 million in the previous quarter. On a brighter note, Coinbase saw a significant boost in its subscription revenues and other services, which totaled $334 million in the quarter, indicating a 59% increase from the previous year.The cryptocurrency exchange expects fourth-quarter subscription and services revenues to be flat with the third-quarter level. It further expects to “generate meaningful” positive adjusted EBITDA for 2023, a slight revision from the previous goal of “improving” full-year 2023 adjusted EBITDA. ETFs in Focus First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT)First Trust SkyBridge Crypto Industry and Digital Economy ETF is designed to provide exposure to companies that SkyBridge believes are driving cryptocurrency, crypto assets and digital economies-related innovation. SkyBridge identifies securities primarily via “bottom up” research focused on finding companies leading in the crypto industry ecosystem. First Trust SkyBridge Crypto Industry & Digital Economy ETF holds 31 stocks in its basket, with Coinbase occupying the second position at 18.8% share.First Trust SkyBridge Crypto Industry & Digital Economy ETF charges 85 bps in fees per year from investors. It has amassed $18.4 million in its asset base and trades in an average daily volume of 16,000 shares. Fidelity Crypto Industry and Digital Payments ETF (FDIG)Fidelity Crypto Industry and Digital Payments ETF offers exposure to companies engaged in activities related to cryptocurrency, related blockchain technology, and digital payments processing. It tracks the Fidelity Crypto Industry and Digital Payments Index and holds 46 stocks in its basket. Coinbase takes the top spot with a 15.9% share.Fidelity Crypto Industry and Digital Payments ETF has accumulated $39 million in its asset base and trades in an average daily volume of 54,000 shares. It charges 39 bps in annual fees. Global X Blockchain ETF (BKCH)Global X Blockchain ETF seeks to invest in companies positioned to benefit from the increased adoption of blockchain technology, including companies in digital asset mining, blockchain & digital asset transactions, blockchain applications, blockchain & digital asset hardware, and blockchain & digital asset integration. Global X Blockchain ETF follows the Solactive Blockchain Index and holds 25 stocks in its basket. Here also, Coinbase is the top firm, accounting for 16.8% of the assets.Global X Blockchain ETF has gathered $64.2 million in its asset base and trades in an average daily volume of 124,000 shares. It charges 50 bps in annual fees. iShares Blockchain and Tech ETF (IBLC)iShares Blockchain and Tech ETF seeks exposure to a wide variety of companies that are involved in the development, innovation and utilization of blockchain and crypto technologies. It follows the NYSE FactSet Global Blockchain Technologies Index and holds 36 stocks in its basket. Coinbase takes the top spot, making up for 13.6% of the assets.iShares Blockchain and Tech ETF has gathered $8 million in its asset base and charges 47 bps in annual fees. It trades in a volume of 9,000 shares per day on average. ARK Fintech Innovation ETF (ARKF)ARK Fintech Innovation ETF is an actively managed fund that invests in companies having the theme of Fintech innovation. The Adviser defines Fintech innovation as the introduction of a technologically enabled new product or service that potentially changes the way the financial sector works, which ARK believes includes transaction innovations, blockchain technology, risk transformation, frictionless funding platforms, customer-facing platforms and new intermediaries. The ETF holds 31 stocks, with COIN occupying the top position at 11.3% of the assets.ARK Fintech Innovation ETF charges 75 bps in annual fees and trades in an average daily volume of 483,000 shares. It has managed assets worth $752.6 million.More By This Author:5 Sector ETFs For Bountiful Returns In November5 Top-Performing Stocks Of The Top ETF Of October 5 ETFs At The Forefront Of Bitcoin’s Thrilling Ascent

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