Coinbase Set to Gain from Rising Institutional Demand for Crypto: Benchmark Insights

The broker Benchmark has commenced its coverage of Coinbase, the prominent crypto exchange, rating it as a buy with a price target set at $252.

Key Highlights:

• Coinbase is recognized for having the most extensive crypto trading platform in the industry, enjoying a 66% share of the domestic market.
• Increased regulatory clarity in the U.S. is anticipated to stimulate institutional interest in cryptocurrencies, favoring firms like Coinbase.
• Following this optimism, Coinbase’s share price experienced a surge of over 4%, reaching approximately $198 in early trading hours.

Analyst Insights:

Mark Palmer, the analyst from Benchmark, highlighted that Coinbase is uniquely positioned to leverage institutional demand, stating:

“As these key pieces of digital assets legislation are enacted in the coming months, there could be a new wave of demand for crypto by an expanded set of institutional investors.”

This comes as regulatory bodies advance distinct legislative measures aimed at stablecoins, enhancing Coinbase’s stature in the market.

For further details, see the insights from Benchmark on CoinDesk’s website.