Since making its much-anticipated market debut, Coinbase has performed mostly in the red and that appears to be weighing on some of its publicly traded peers.
The stock—which began trading on the Nasdaq on April 14—has declined from more than $410 a share to about $293 at the close on April 22. Since its direct listing day, Coinbase is down more than 10%.
To be sure, it’s still early days for the stock. More often than not, it takes time for a direct listing of a stock to find its footing, as noted by hedge fund executive Jeff Dorman.
“I’m not surprised at all by the COIN price action,” Dorman, the chief investment officer of Arca, told The Block. “No major banks have written research on COIN yet. Plus most investors will want to see another quarter of numbers to see if 1Q was a flash in the pan or not.”
Still, while Wall Street has been digesting Coinbase, firms like Silvergate, Galaxy Digital, and Voyager have seen their market capitalization and stock prices drop.