Overview
- An October 10 sector liquidation erased roughly $21 billion in leveraged positions and coincided with a 9% quarter-over-quarter drop in spot volumes on centralized exchanges.
- Coinbase shares fell nearly 35% in Q4, underperforming Bitcoin and Ether and weighing on ARKK, ARKW, and ARKF.
- The company is expanding beyond crypto with Kalshi-powered prediction markets, plans to issue tokenized equities in-house, and an AI portfolio advisor.
- Analysts turned more positive in early January, with Goldman Sachs upgrading Coinbase to Buy and Bank of America also raising its rating.
- ARK said losses tied to Coinbase were partially offset by gains in AMD, Shopify, and Rocket Lab, which secured an $816 million missile-warning satellite contract.