Coinbase rides Bitcoin ETF wave to record Q1 profits and trading volumes

Coinbase’s December volatility and Bitcoin ETFs prompted the exchange to post Q1 results better than the yearly 2023 report. The optimistic crypto exchange Coinbase provided that it rebounded in the first quarter of 2024, driven by market conditions and the launch of Bitcoin exchange-traded funds (ETFs).

Coinbase’s Q1 2024 crypto surge

The marketplace Saw $1.6 billion in total Revenue and $1.2 billion in net Income in the first quarter, and the company Accumulated $1 billion in Adjusted EBITDA, which means a company’s profit before interest, Taxes, depreciation, and amortization. In 2023, Coinbase’s EBITDA was $977.5 million amidst the adjustments.

The company’s net income was fortified by substantial $737 million realization gains this time on its crypto assets, including Bitcoin. The company closed the quarter with an approximate $7.1 billion asset base, inclusive of $1.1 billion net cash mobilized through the conversion of 2030 convertible notes.

Source. Coinbase

The proportion of total liabilities for the period had been expanded by $200.7 million in the first quarter of 2023 to $339.9 million in 2024. Sales from consumer transactions went up to $935 million, and this was the highest number recorded for 99%. Dealership volume for the quarter was $56B with an impressive 93% growth, which outshined the US spot market, which had an increase of 91% also within the same reference period. 

Institutional transactions that were above average also increased the figures, with them making $85M and generating revenue growth of 133% in the quarter. Spotlighting the report, trade volume on its platform for institutional clients, Coinbase Prime, went up by 105 % from the previous one and amounted to $256 billion, which is two to three times the U.S. spot market.

Riding the Bitcoin ETF wave

Thus, in the first quarter of this year the company’s institutional platform, Coinbase Prime, recorded all-time highs in trading volume and client numbers. At the same time, Bitcoin ETFs – along with workable trading conditions unleashed a spin-off engine of greater client engagement through wider use of the product suite; it turned out that nearly 40 percent of institutional clients interacted with at least three

In addition, the exchange’s concierge service witnessed a 64% surge, with $32 million of revenue for the first quarterly period, mostly influenced by crypto asset prices and revenue from Bitcoin ETFs. While the exchange has essentially custody of eight of the 11 new funds from its range of Bitcoin products, the remaining plants are handled by other big players as constant innovation occurs. As of the close of the quarter, the custodial portfolio amounted to $171 billion.