If You Invested $1,000 In Coinbase Stock When The SEC Lawsuit Was Filed, Here's How Much You'd Have Today

The cryptocurrency sector has been highly volatile in 2023 with many companies and experts wanting more clarity on regulation. A lawsuit filed against leading cryptocurrency platform Coinbase Global Inc COIN rattled the market earlier this year.

Here’s a look at how an investment in Coinbase has turned out since the lawsuit was filed.

What Happened: The U.S. Securities and Exchange Commission filed a lawsuit against Coinbase Global on June 6, 2023, accusing the company of breaking securities rules.

A complaint by the SEC said Coinbase was acting as an unregistered broker and had violated rules since at least 2019.

“We allege that Coinbase, despite being subject to securities laws, commingled and unlawfully offered exchange, broker-dealer, and clearinghouse functions,” SEC Chair Gary Gensler said at the time.

The SEC complaint targeted Coinbase’s staking-as-a-service program.

Coinbase has fired back against the SEC seeking answers on regulation and also questioned how it was able to go public in 2021 with many of its programs that are now under question laid out in its IPO prospectus.

Analysts and crypto experts have questioned the SEC’s involvement with crypto regulation with Tuesday’s ruling against the SEC and in favor of Grayscale Investments another sign that rules are not clear.

Tuesday’s ruling could see the Grayscale Bitcoin Trust GBTC converted to an ETF sent shares of Coinbase, Bitcoin BTC/USD, and crypto-related stocks higher. The ruling also led to increased optimism that Bitcoin ETFs will be approved in short order. Coinbase is serving as the custodian for many of the Bitcoin ETFs and is seen as a potential winner in the ruling.

Related Link: EXCLUSIVE: Watch Cathie Wood Predict SEC's Loss In Bitcoin ETF Case In Benzinga Interview 

Investing $1,000 in Coinbase Stock: Shares of Coinbase were hit by the news of the SEC lawsuit and traded in a range of $46.43 to $52.38 on June 6, 2023.

A $1,000 investment in Coinbase shares at their intraday lows on the day of the SEC lawsuit announcement could have purchased 21.54 shares. The $1,000 investment would be worth $1,832.19 today. This represents a return of 83.2% in less than three months.

Bitcoin traded at a low of $25,434.87 on June 6, 2023. A $1,000 investment could have purchased 0.0393 BTC. The $1,000 investment would be worth $1,070.34, representing a return of 7.0%.

For comparison, the same $1,000 invested in the broad stock market wouldn’t have performed as well. A $1,000 investment in the SPDR S&P 500 ETF Trust SPY, which tracks the S&P 500, would be worth $1,057.31 today. This represents a return of 5.7%.

Join Benzinga’s Future of Digital Assets in New York City on Nov. 14, 2023, to hear from Grayscale Investments Vice President of Client Team Brooke Stoddard. Secure early bird discounted tickets now!

Read Next: Coinbase Q2 Earnings Highlights: Revenue Beat, EPS Beat And More 

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