Coinbase stock surges on Grayscale's bitcoin ETF ruling

Shares of crypto platform Coinbase (COIN) are jumping after a federal appeals court ruled in favor of Grayscale's bid to convert its spot bitcoin trust (GBTC) into an ETF. Yahoo Finance Live examines Coinbase's stock action and how crypto assets such as bitcoin and ethereum are reacting to this news.

Video Transcript

- Coinbase, shares popping there. The stock tied to the crypto space seeing a boost in today's trading session, closing at nearly 15% now, the move to the upside coming after a federal appeals court delivering a favorable ruling related to a spot Bitcoin ETF, and this all ties back to Grayscale and the ruling, their ruling against the SEC I should say, in favor of Grayscale.

Now, the excitement in Coinbase, there's been some conflicting, I guess, opinions out there in the street, because Dan Dolev over at Mizuho was actually out with a note saying that he doesn't think this is going to really materially benefit Coinbase. But, Akiko, we're seeing the excitement in Coinbase, the excitement in Bitcoin today, and we have seen, certainly, a number of asset managers wanting to get into that spot Bitcoin ETF space.

AKIKO FUJITA: Yeah, Dan Dolev over at Mizuho saying that just because the platform offers crypto doesn't necessarily mean it's positive, because it could actually increase competition and really put pressure on retail take rates for Coinbase specifically. He's already got an underperform rating on the stock. But worth noting, by the way, it wasn't just Bitcoin and Ethereum of the main crypto assets that we follow closely that rallied today. We also saw some of those Bitcoin mining plays also seeing a big bump on the back of this, Ride and Marathon Digital Holdings rallying in the session as well.