Robinhood Steals Coinbase's Crypto Thunder: Analyst Points to Fee Fumbles

Mizuho analyst Dan Dolev reiterated a Sell rating on Coinbase Global, Inc COIN with a price target of $27.00.

The analyst believes COIN is losing its share in retail crypto trading to Robinhood Markets, Inc HOOD.  

In his view, a potential culprit is that customers are starting to push back on COIN's higher fees on small-ticket crypto trades, a practice in which HOOD has not participated. 

Dolev's analysis suggests that COIN's share of combined COIN retail + HOOD crypto volumes trended lower in April vs. the approximate 65% ratio in the prior three quarters.

Also Read: What's Going On With Coinbase Shares Today

There is no perfect explanation for potential share losses besides worries about regulatory pressures, given SEC actions against crypto or the increase in small-ticket retail trading fees at COIN. 

For perspective, COIN has been raising fees for small-ticket retail traders to offset volume declines. 

On the other hand, retail trading peer HOOD did not increase spreads, which likely attracted some customers to its platform.

Price Action: COIN shares traded lower by 0.78% at $53.49 on the last check Thursday.

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