Shares of Coinbase Global, Inc. COIN declined 4% in after-hours trading on May 7, 2026, (as cited in CNBC) following the company’s first-quarter 2026 results. This crypto exchange failed to meet Wall Street analysts’ expectations for both revenues and earnings.
Against this backdrop, an investor may not feel particularly confident about investing in COIN at the moment.
Coinbase delivered growth across its diversified offerings, with retail derivatives’ annualized revenues exceeding $200 million. Despite this year’s slump in crypto prices, COIN’s crypto trading volume market share increased to 8.6%, marking a new all-time high.
Considering these strengths, including COIN’s position as a leading cryptocurrency exchange and its deep expertise in digital assets, investors may still want to capitalize on the stock’s long-term momentum. However, to mitigate stock-specific risks, a diversified approach through exchange-traded funds (ETFs) with significant COIN exposure may be a more prudent strategy.
But before diving straight into these ETFs, let us analyze Coinbase’s overall first-quarter performance across key metrics, along with its outlook.
A Brief Analysis of COIN’s Q1 Results
Coinbase’s first-quarter earnings and revenues fell short of the consensus estimate by 147.2% and 5.6%, respectively. On a year-over-year basis, the company witnessed a decline on both counts.
Its trailing-12-month derivatives trading volume grew 169% year over year, driven by increasing consumer and institutional adoption.
Meanwhile, Coinbase remains the distribution engine driving growth of USDC, the world’s largest regulated stablecoin, with more than 25% of total USDC in circulation. Average USDC held in Coinbase products reached a new all-time high of $19 billion during the quarter.
COIN ended the quarter with more than $10 billion in cash and cash equivalents and total available resources of $12 billion.
Looking ahead, Coinbase expects to incur recurring expenses in the range of $50-$60 million in the second quarter due to headcount reductions. Conversely, the company projects its technology and development as well as general and administrative expenses to decline 4-9% sequentially to a range of $820-$870 million.
Coinbase-Heavy ETFs in Spotlight
First Trust SkyBridge Crypto Industry & Digital Economy ETF CRPT
This fund, with net assets worth $120.3 million, offers exposure to 19 companies from the crypto industry, including Bitcoin Exchange-Traded Products and Digital Economy companies. Of these, Coinbase holds the fourth spot, with 10.86% weightage.
CRPT has gained 2.4% year to date. The fund charges 85 basis points (bps) as fees.
iShares Blockchain and Tech ETF IBLC
This fund, with assets worth $94.4 million, offers exposure to 42 U.S. and non-U.S. companies that are involved in the development, innovation, and utilization of blockchain and crypto technologies. Of these, Coinbase holds the third spot, with 8.71% weightage.
IBLC has surged 24.8% year to date. The fund charges 47 bps as fees.
Global X Blockchain ETF BKCH
This fund, with net assets worth $429.1 million, provides exposure to 34 companies that are positioned to benefit from further advances in the field of blockchain technology. Of these, Coinbase holds the third spot, with 8.53% weightage.
BKCH has soared 33.9% year to date. The fund charges 50 bps as fees.
Fidelity Crypto Industry and Digital Payments ETF FDIG
This fund, with net assets worth $260.5 million, provides exposure to 77 companies that are engaged in activities related to cryptocurrency, related blockchain technology and digital payments processing. Of these, Coinbase holds the third spot, with 4.75% weightage.
FDIG has rallied 14.7% year to date. The fund charges 39 bps as fees.
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Global X Blockchain ETF (BKCH): ETF Research Reports
Coinbase Global, Inc. (COIN): Free Stock Analysis Report
First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT): ETF Research Reports
Fidelity Crypto Industry and Digital Payments ETF (FDIG): ETF Research Reports
iShares Blockchain and Tech ETF (IBLC): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).