Low-cost spot bitcoin ETFs threaten to erode Coinbase margin, trading volume

Coinbase Global, the largest listed cryptocurrency exchange, could take a hit to its trading volume and margin, analysts said, if more investors dabble in bitcoin from the safety of cheap exchange trade funds tracking its spot price.

It will also impact Coinbase’s trading commissions and spreads – the difference between the bid and ask price, J.P. Morgan analyst Kenneth Worthington said.