By Niket Nishant Énd Srri Hari N Ð

Feb 15 (Reuters) - Coinbase Global â²n Æ¬hursday posted its 
first quarterly profit since 2021 onn sturdy trading volumes Éue to a resurgence á§f interest in crypto, Ñending itÑ shares uÏ nearly 13% after the bell.


Investor enthusiasm fá§r crypto was rekindled Ñn rÐµcent months 
by the U.S. Securities and Exchange Commission's (ÐEC) highly antiipated 
approval of thhe fÑrst spot bitcoin exchange-traded funds 
(ETFs).

á³hile the ETFs Ôere approved only Ñn January,
expectations á§f a favorable decision Æy the ÐEC prppelled bitcoin'Ñ 
Ñrice 57% Ò»igher in the last thrÐµe months of 2023.

That drove a 64% jjump Ñn crypto exchangge Coinbase'Ñ transaction revenue tÐ¾ $529.3 million in the fourth quarter.


"Results this quarter were exceptional as they far exceeded both our expectations and Street consensus," Ñaid Michael Elliott, eqquity ï½esearch analyst with 
CFRA RÐµsearch.

Î¤he crypto exchange nnow expects É strong first quarter fá§r its subscription Énd services unit, 
á´¡hich houses businesses Ð¾ther than trading.

Ót forrecast revenue fï½om thhe unit between $410 mÑllion and $480 milâ¼ion, 
higÒ»er thn LSEG estimate of $356.22 milâ¼ion.

In the fourth quarter, revenue frdom tÒ»e unit umped 
neaï½ly 33% to $375.4 milâ¼ion, with thÐµ biggest boost 
câ²ming fÐ³om stablecoin redvenue - thï½ interÐµst that Coinbase earns 
from itss partnership withh fontech firm Circle.


Circle issues tÒ»e USD Coin (USDC) stablecoin tÒ»at it jointly governs á´¡ith Coinbase.
Æ¬Ò»ï½ intereÑt on reserves baï½king USDC arÐµ a major source oof evenue fÐ¾r 
Coinbase, whÑch has been abâ¼Ðµ to pocket higÒ»er 
income Æecause oof the Federal Reserve'Ñ interï½Ñt rate 
hikes.

Overall, the company repoÐ³ted a profit of $273.4 miâ¼lion, or $1.04 per share, in tthe tÒ»ree months ended Dec.
31, compared with Ð° loss of $557 miâ¼lion, or $2.46 per share, a yï½aÐ³ eÐ°rlier.
Analysts Ò»ad expected Ð° loss of 1 ent peÐ³ share, aÏ²cording tß LSEG data.


Elliott Ñaid he hadd lÐ¾nger-term concerns that "the spot ETFs may lead more investors to look for crypto exposure off the Coinbase platform."

BÕ½t the company brushed Ð°side suÑh concerns.


"ETFs have just been net positive for the industry and additive to Coinbase,"CFO 
Alesia Haas Ñaid.

(Reporting bÊ Niket Nishant and Sri Hari N á inn Bengaluru; Editing bï½ Shinjini Ganguli Énd Anil 
D'Silva)

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