Bitcoin’s further move closer to mainstream may lay the groundwork for crypto stock Coinbase to join the S&P 500, according to Oppenheimer. “We are approaching a historic inflection point for blockchain development in the U.S.,” analyst Owen Lau said in a client note late Sunday. “For investors seeking blockchain exposure in their portfolios, we see COIN as an attractive long-term investment option,” he added. “We believe that 1) regulatory clarity and 2) the mainstreaming of digital assets will increase the likelihood of COIN being included in the S&P 500,” he said. “We are gradually becoming more positive on COIN’s long-term thesis.” Lau rates Coinbase an Outperform and has a price target of $282, up about 12% from current levels. Cryptocurrency trading and other uses may not be widespread yet, but Bitcoin enthusiasm in the U.S. is on the rise, as evidenced by former President Donald Trump’s speech at the year’s biggest industry conference in Nashville over the weekend. Lau’s remarks were part of a debriefing session at the event, where policy and regulation were priorities. Trump was joined by independent presidential candidate Robert F. Kennedy Jr., Bitcoin-supporting Sen. Cynthia Lummis, Republican of Wyoming, and Rep. Ro Khanna, Democrat of California. Coinbase went public in 2021. Its shares have risen about 160% over the past year, outperforming the S&P 500 over the same period. But over the past three years, its stock price has risen just 3% compared to a 23% rise in the S&P 500. Its stock price has been correlated with the notoriously volatile bitcoin, but analysts and investors expect cryptocurrency volatility to ease as the industry matures with the development of regulated investment products like ETFs and cryptocurrency-based use cases separate from trading.
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Coinbase may be poised to hit a mainstream milestone that will boost its stock price, Oppenheimer predicts
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