Coinbase Set at $140 as Derivatives Competition Grows
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Compass Point reiterated a "Sell" rating and a $140 price target for Coinbase, citing limited revenue growth in derivatives.
- Coinbase obtained CFTC regulatory relief to offer offshore perpetual futures to U.S. customers via its $2.9 billion‑acquired Deribit subsidiary.
- CFTC approved Kalshi to launch Bitcoin‑linked perpetual futures, while other firms (Interactive Brokers, Kraken, Robinhood) are also rolling out similar products, intensifying competition.
- Coinbase reported $50 million of Q1 revenue from perpetual futures, as retail trading revenue fell to its lowest level since Q3 2024, suggesting cannibalization.
- Binance was highlighted as a potential offshore venue that could erode Coinbase’s market share if the CFTC permits U.S. traders to access it, according to Compass Point.
Why it matters: Investors see a downside as Coinbase’s share is pressured by a $140 target and shrinking retail revenue, while rivals gain market share in the fast‑growing perpetual‑futures market.
Ask SkimNews
