American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Coinbase stock vs CONY ETF: Better buy as Bitcoin hits $100k?

by admin December 5, 2024
December 5, 2024
Coinbase stock vs CONY ETF: Better buy as Bitcoin hits $100k?

Coinbase stock and the YieldMax COIN Option Income Strategy (CONY) ETF will be in the spotlight after Bitcoin surged above the key resistance level at $100,000. CONY was trading at $18 on Wednesday, down by 37% this year, while COIN was at $330, up by 90% this year. 

Bitcoin price hits $100,000

The main catalyst for the Coinbase and CONY ETF will be the ongoing Bitcoin price surge as it crossed the important resistance level at $100,000. It then quickly jumped to $103,000, a trend that could continue in the coming months.

Coinbase and other crypto-related companies do well when Bitcoin is in a strong uptrend because of the impact on volumes. Ideally, when Bitcoin rises, other altcoins rise as well. The market cap of all cryptocurrencies has jumped to over $3.8 trillion. 

Recent data shows that centralized and decentralized exchanges have seen higher volumes, a move that will benefit Coinbase.  

Data by The Block shows that the volume traded in CEX exchanges rose to the highest level this year in November. Coinbase handled over $175 billion in transactions, a big increase from the $62 billion it processed a month earlier.

Most importantly, Coinbase’s Base Blockchain has also become the fourth-biggest chain in the crypto industry. Its 24-hour volume stood at $1.69 billion, while its seven-day volume was $12.2 billion. Base Blockchain has handled almost $50 billion in volume since its inception. 

Coinbase is growing

A key challenge for Coinbase is that its business has lost market share to companies like Bybit and Crypto.com.

Still, the most recent results showed that its business was doing well. Its revenue rose to $1.2 billion, while its net income was about $75 million. 

The company is also expanding its business in other areas. In addition to transaction revenue, which stood at $572 million last quarter, it has become a large player in the subscription business. Its stablecoin revenue rose to $246 million, while its total subscription and services revenue jumped to $556 million. Its custody business, which houses its ETFs made over$31 million. 

Coinbase is also benefiting from its Bitcoin holdings. Data by BitcoinTreasuries shows that the company has 9,480 Bitcoins in its balance sheet. These coins are now worth over $976 million. 

Coinbase stock vs CONY ETF

For an investor interested in Coinase, there are two main ways to go about it. They can invest directly in the stock and benefit as it rises. The other option is where they invest in the CONY ETF, which generates dividends. 

Coinbase stock is a straightforward way to invest in the company. CONY, on the other hand, uses covered calls to invest in the company. In this, it invests in the stock and then sells call options. A call option gives an investor a right but not the obligation to buy an asset. 

After selling the call option, the fund receives a premium, which it distributes to shareholders as a dividend. Data by SeekingAlpha shows that the yield now stands at 124%. 

Data shows that the Coinbase stock price has jumped by 134% in the last 12 months, while the CONY ETF has dropped by 30.5%. However, with dividends included, the CONY ETF has had a total return of 94%, still lower than COIN’s 134%.

Therefore, using this data, it makes sense to invest in the 0%-yielding Coinbase than the 125%-yielding CONY ETF. The same is true with other covered call ETF funds like the JPMorgan Equity Premium Income ETF (JEPI) and JPMorgan Nasdaq Equity Premium Income (JEPQ), which often underperform the S&P 500 and Nasdaq 100 indices.

The post Coinbase stock vs CONY ETF: Better buy as Bitcoin hits $100k? appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Bitcoin hits $100K as Asia-Pacific markets trade mixed amid global political turmoil
next post
UniCredit sets March deadline for Banco BPM takeover bid

Related Posts

Long CGNX: Cognex Corporation, AI Innovation Sparks Bullish...

January 15, 2025

Sam Altman rejoins OpenAI board of directors, months...

March 10, 2024

The Body Shop shuts down U.S. operations, with...

March 13, 2024

Business groups hit back at efforts to cap...

March 6, 2024

Frontier Airlines does away with change fees in...

May 20, 2024

Europe market open: Stoxx 600 edges lower before...

April 17, 2025

Why an indicator that has foretold almost every...

July 26, 2024

Federal Reserve holds interest rates steady as consumer...

February 1, 2024

Top 3 tailwinds that will drive growth for...

February 15, 2025

Market sell-off: how long before we hit the...

March 12, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • GMS stock jumps 29% on takeover interest from Home Depot, QXO, analysts raise PTs

      June 22, 2025
    • Japan’s rice price surge: what’s driving it and why it could spark a political crisis

      June 22, 2025
    • BofA raises STOXX 600 target amid resilient global growth, warns on Mideast risks

      June 22, 2025
    • Palantir co-founder: US must prevent Iranian nukes

      June 22, 2025
    • Fed governor Waller advocates for July rate cut amid tariff, labor market outlook

      June 21, 2025

    Categories

    • Business (3,199)
    • Investing (2,531)
    • Latest News (2,000)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved