Coinbase shares widen losses as business expands into new metal futures

Coinbase stock widened its losses on Tuesday even as the cryptocurrency exchange rolled out copper and platinum futures trading in a bid to diversify beyond digital assets that have eroded investor confidence.

The company announced Tuesday that traders can now access it. copper and platinum Futures trading will now be available on the platform, joining the previously available gold and silver contracts.

Coinbase stock fell 1.24% in intraday trading to $208, its lowest since May of last year, before recouping some losses to close at $210. Google Finance data showed little profit in after-hours trading.

The company's stock price has fallen more than 10% since the beginning of the year and continues to fall. 46% from July The all-time high was $398..

The stock has fallen 9.9% over the past month, indicating growing uncertainty in both the crypto market and investors in high-beta risk assets.

The rally in metals comes as the crypto market tries to stabilize, with Bitcoin remaining relatively stable above $88,000, according to data from CoinGecko.

A quarterly report released by Coinbase Institutional and Glassnode on Tuesday suggests that: The market is entering a healthier phasesaid that “excessive leverage was removed from the system in the fourth quarter,” and that “the macro environment looks healthy and monetary policy should be supportive.”

Stephen Wu, Clearpool's chief operating officer (COO), said: decryption He said Coinbase's share price decline reflects “broader market conditions rather than a specific loss of confidence in execution,” noting that Coinbase trades as a “high-beta risk asset” as investors move toward commodities and yield.

Wu said the expansion into metal futures is “more about expanding Coinbase's role as a derivatives trading venue over time, rather than directly hedging crypto volatility,” but cautioned that metals are “unlikely to offset crypto market volatility in a meaningful way in the short term.”

Allen Ding, head of Bitfire Research, echoed that sentiment. decryption He said the addition of new metal futures is “a tactical product diversification rather than a complete strategic hedge.”

He said that because “abundant liquidity in metals is still concentrated on traditional exchanges like CME,” these services “have become more of a complementary feature for user retention than a primary growth engine.”

“Ultimately, these products diversify the suite, but may not fully insulate the business from the volatility inherent in crypto-native markets,” Ding added.

Mr. Wu said: Regulatory uncertainty About the proposed CLARITY stable coin This framework could have a “significant impact on USDC adoption and Coinbase's revenue,” especially if the distribution of yield to users is restricted.

Coinbase's withdrawal of support for the Senate Market Structure Act has helped stall the Clarity Act's bid in the Senate Banking Committee, highlighting the industry's unresolved concerns about provisions such as stablecoin reward limits and other rules that could impact innovation and business models.

Regulatory risk is “weighing disproportionately on investor sentiment,” he said, even though trading volume remains Coinbase's main revenue driver, as stablecoin interest income is “highly profitable and directly linked to profits.”