In a groundbreaking turn of events, Coinbase, the leading cryptocurrency exchange, has reported its first quarterly profit since 2021, sending shockwaves through the financial market. The company’s recent earnings report, released on Thursday, revealed a staggering revenue of $953.8 million, surpassing analysts’ predictions of $826.1 million. The news triggered a nearly 13% surge in Coinbase’s stock price in after-hours trading, marking a remarkable 150% increase over the last 12 months.

The crypto exchange’s trading volume also experienced a substantial boost, more than doubling to $154 billion from the previous quarter, exceeding analysts’ expectations of $142.7 billion. Coinbase’s optimistic outlook extends into the first quarter of 2024, with expectations to generate between $410 million and $480 million in subscription and service revenue.

Anil Gupta, Coinbase’s Vice President of Investor Relations, expressed satisfaction with the results, attributing the success to operational discipline established early in the year. Gupta stated, “We’re really pleased with the results. Operational rigor that we set forth early in the year really paid off over the course of 2023.”

This financial triumph for Coinbase unfolds against the backdrop of a bullish market, with Bitcoin surpassing the $50,000 mark following the SEC’s approvals of Bitcoin ETFs. In a similar vein, trading platform Robinhood reported a substantial increase in crypto revenue to $43 million, contributing to an 8% year-over-year boost in overall transaction-based revenue to $200 million.

Gupta highlighted the significance of the ETF victories for the crypto industry, emphasizing that it is a win-win situation for Coinbase. The exchange currently provides custodial services to eight out of the ten spot bitcoin ETFs, solidifying its pivotal role in the business. While custody represents a relatively small part of Coinbase’s current operations, the rise of ETFs has invigorated the entire sector, leading to increased activity and engagement on the platform.

The crypto exchange’s trading volume also experienced a substantial boost, more than doubling to $154 billion from the previous quarter, exceeding analysts’ expectations of $142.7 billion. Coinbase’s optimistic outlook extends into the first quarter of 2024, with expectations to generate between $410 million and $480 million in subscription and service revenue.

Anil Gupta, Coinbase’s Vice President of Investor Relations, expressed satisfaction with the results, attributing the success to operational discipline established early in the year. Gupta stated, “We’re really pleased with the results. Operational rigor that we set forth early in the year really paid off over the course of 2023.”

This financial triumph for Coinbase unfolds against the backdrop of a bullish market, with Bitcoin surpassing the $50,000 mark following the SEC’s approvals of Bitcoin ETFs. In a similar vein, trading platform Robinhood reported a substantial increase in crypto revenue to $43 million, contributing to an 8% year-over-year boost in overall transaction-based revenue to $200 million.

Gupta highlighted the significance of the ETF victories for the crypto industry, emphasizing that it is a win-win situation for Coinbase. The exchange currently provides custodial services to eight out of the ten spot bitcoin ETFs, solidifying its pivotal role in the business. While custody represents a relatively small part of Coinbase’s current operations, the rise of ETFs has invigorated the entire sector, leading to increased activity and engagement on the platform.

Alesia Haas, Coinbase’s CFO, echoed this sentiment, stating, “ETFs have just been net positive for the industry and additive to Coinbase.” Investors are optimistic that Bitcoin ETFs will attract more institutional money into the crypto industry. In the fourth quarter, Coinbase witnessed a 79% increase in consumer transaction revenue compared to the previous quarter, while institutional transaction revenue soared by an impressive 161% over the same period.

Coinbase’s strategic move to slash fees earlier this month further fueled its success, aimed at attracting high-volume traders to boost its institutional business. The exchange is offering a fee waiver for 60 days for Coinbase Advanced customers trading crypto on its professional market if they have traded over $500,000 per month on a rival exchange.

As the cryptocurrency landscape continues to evolve, Coinbase’s performance stands as a testament to the increasing acceptance and integration of digital assets into traditional financial markets. The convergence of Bitcoin ETFs and Coinbase’s strategic initiatives has propelled the exchange to new heights, attracting both retail and institutional investors.