ETFs in Spotlight as Coinbase Shares Slip Despite Upbeat Q3 Earnings

Core Insights - Coinbase Global, Inc. experienced a 4.6% increase in shares on October 31, following better-than-expected Q3 2025 results, but saw a subsequent decline of 3.9% on November 3 due to a hack affecting the Ethereum-based protocol Balancer [1][2] Q3 Performance Analysis - Coinbase's Q3 earnings surged by 128.6% year-over-year, while revenues grew by 55.1%, exceeding Zacks Consensus Estimates [3] - Revenue growth was driven by strong performance in both Transaction and Subscription & Services segments, with increased trading volume and instant transfer activity contributing to the Transaction segment [4] - The company reported a cash outflow from operating activities of $638.8 million, compared to a cash inflow of $1.59 billion in the same period last year [4] Strategic Developments - The acquisition of Deribit in August 2025 led to over $840 billion in total derivatives volume in Q3, supported by increased participation from institutional and advanced traders [5] - Coinbase customers held an average of $15 billion in USDC, contributing significantly to USDC's all-time high market cap of $74 billion [6] Future Outlook - The company anticipates growth in subscription and services revenue in Q4 2025, driven by higher average crypto prices and the expansion of the Coinbase One subscriber base [6] - Total depreciation and amortization expenses are expected to exceed historical averages in Q4 due to the amortization of intangibles from recent acquisitions [7] ETFs with Coinbase Exposure - First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT) has $153.2 million in assets, with Coinbase representing 16.38% of the fund and a year-to-date gain of 26.2% [8] - iShares Blockchain and Tech ETF (IBLC) has $105.5 million in assets, with Coinbase holding 9.77% and a year-to-date surge of 82.7% [9] - Fidelity Crypto Industry and Digital Payments ETF (FDIG) has $293 million in assets, with Coinbase at 7.10% and a year-to-date increase of 64.6% [10] - Global X Blockchain ETF (BKCH) has $442.5 million in assets, with Coinbase at 6.97% and a year-to-date growth of 111.9% [11] - Bitwise Crypto Industry Innovators ETF (BITQ) has $512.8 million in assets, with Coinbase at 7.80% and a year-to-date gain of 71.2% [12][13]