Coinbase CFO: We definitely see several drivers for retail growth

2 min readFeb 22, 2024

The rise in the crypto market is once again attracting retail investors with small deposits, Bloomberg noted. Customer profits from transactions on the popular digital platform Coinbase increased 60% in the final quarter of last year compared to the same period in 2022. And Robinhood representatives reported an increase in trading volume of digital currencies in December 2023 by more than 240%.

Arca trader Kyle Doan says that there are noticeable signs that the retail audience is starting to return to the market, but not yet on the same scale as during the last bull cycle. According to him, this can be seen in the shares of cryptocurrency companies, which show greater volatility than many tokens.

The expert recalled that retail investors play an important role in the cryptocurrency industry. For example, during the previous bull cycle, the bulk of Coinbase’s profits came from micro traders.

However, it would be premature to talk about a massive return of retail investors. The trading volume of such Coinbase users is just over 16% of the end of 2021, which has become a landmark period for the entire industry.

“We definitely see several drivers for retail growth. In the past, halvings have been a significant factor in attracting retail customers,” said Coinbase CFO Alecia Haas.

Cryptocurrencies will be a key product in every company’s portfolio, says Coinbase CEO Brian Armstrong. It predicts how businesses will use digital assets in a variety of financial transactions, including balance sheet management, supplier payments and payroll.

Armstrong also shared his thoughts on the future of the cryptocurrency space and the importance of BTC spot exchange-traded funds for his company. According to him, a Bitcoin ETF is “a win-win for Coinbase.”

“So in preparation for this launch, we won 8 of 11 spot bitcoin custody mandates from issuers, and today Coinbase Custody is about 90% of the $36 billion in bitcoin ETF assets as a result,” Coinbase CEO said.

Armstrong believes that this direction will allow his company to take a leading position in the cryptocurrency market.