Coinbase Rises to Become World’s 4th Largest Publicly Listed Exchange

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The global financial world is witnessing a powerful shift as Bitcoin continues to capture investor attention. Recently, Bitcoin surged past the $64,000 mark, reaching an intraday high of $64,037—the highest level since November 2021—before settling around $61,500. This renewed bullish momentum has not only reignited interest in digital assets but also significantly boosted the market value of companies tied to the crypto ecosystem.

Among the biggest beneficiaries is Coinbase, the U.S.-based cryptocurrency exchange that went public in 2021. Riding the wave of Bitcoin's rally, Coinbase’s market capitalization soared past $50 billion, peaking at $51.8 billion (approximately HK$404.2 billion). This valuation now exceeds that of both the **Hong Kong Exchange (HKEX)**—valued at around HK$307.8 billion—and the German Exchange, positioning Coinbase as the fourth-largest publicly traded exchange in the world by market cap.

This milestone underscores a broader transformation in how traditional financial markets perceive and integrate digital assets. Once seen as a speculative niche, cryptocurrencies are increasingly being treated as legitimate components of investment portfolios.

The Catalyst Behind the Surge

A key driver behind Bitcoin’s resurgence—and by extension, Coinbase’s rising valuation—was the U.S. Securities and Exchange Commission’s (SEC) landmark decision in January 2025 to approve the first batch of spot Bitcoin ETFs. This regulatory green light marked a turning point, granting institutional investors easier and more secure access to Bitcoin through familiar brokerage platforms.

👉 Discover how regulated crypto investment products are reshaping global markets.

The approval triggered a surge in trading volume and investor participation across major exchanges. Notably, reports indicate that Morgan Stanley is currently conducting due diligence to assess whether it should offer spot Bitcoin ETFs to clients on its brokerage platform—a move that signals growing institutional confidence in digital assets.

With Wall Street giants like Morgan Stanley exploring crypto integration, the line between traditional finance and digital asset markets continues to blur.

Bitcoin Outperforms Traditional Assets

Over the past month alone, Bitcoin has delivered returns exceeding 47%, dramatically outperforming conventional asset classes such as equities and gold. While stock markets have shown moderate gains amid economic uncertainty, and gold has maintained steady demand, Bitcoin’s performance highlights its emerging role as a high-growth alternative investment.

Despite Bitcoin’s volatility, many investors now view it as a hedge against inflation and monetary expansion—similar to gold—but with higher upside potential. According to the World Gold Council, global gold demand hit a record high in 2024, driven by strong over-the-counter (OTC) activity and sustained central bank purchases. Total gold consumption rose about 3% to 4,899 tonnes, reflecting ongoing faith in the precious metal as a store of value.

Yet even with gold’s resilience, Bitcoin’s return profile over short- to medium-term horizons remains unmatched among mainstream assets.

Ethereum Joins the Momentum

Bitcoin isn’t the only cryptocurrency experiencing renewed momentum. Ethereum, the second-largest digital asset by market cap, climbed to $3,500 on Thursday, February 29—the highest level since May 2022—before pulling back slightly to around $3,375 on March 1.

The Ethereum rally reflects growing optimism around its utility in decentralized finance (DeFi), non-fungible tokens (NFTs), and smart contract applications. As enterprise adoption of blockchain technology expands, Ethereum continues to serve as a foundational platform for innovation.

Zaheer Ebtikar, founder of crypto investment firm Split Capital, noted that a “very visible fear of missing out” is taking hold in markets. “More and more people believe they should be buying Bitcoin,” he said—an observation echoed by analysts tracking retail and institutional inflows into digital assets.

Why Coinbase Stands to Gain

As one of the most regulated and transparent crypto exchanges in the U.S., Coinbase is uniquely positioned to benefit from this new era of mainstream adoption. Its compliance-first approach makes it a preferred gateway for institutional investors navigating complex regulatory landscapes.

Moreover, Coinbase doesn’t just profit from trading fees. Its expanding suite of services—including custody solutions, staking, and lending—allows it to generate revenue across multiple vectors. With increasing demand for regulated crypto access, platforms like Coinbase are becoming critical infrastructure in the digital economy.

👉 Learn how leading crypto platforms are building the future of finance.

Frequently Asked Questions

Q: What caused Coinbase to become one of the top global exchanges?
A: Coinbase's rise was fueled by Bitcoin's price surge and increased adoption of crypto investment products, especially after the SEC approved spot Bitcoin ETFs. Institutional interest and expanded service offerings have further strengthened its market position.

Q: How does Coinbase compare to traditional stock exchanges?
A: While traditional exchanges facilitate trading of stocks and bonds, Coinbase specializes in digital assets. Its market cap now surpasses major traditional exchanges like Deutsche Börse and HKEX, reflecting growing investor confidence in crypto infrastructure.

Q: Is Bitcoin outperforming gold?
A: Yes. Over the past month, Bitcoin has gained over 47%, while gold saw modest growth driven by central bank demand. Though gold remains a stable long-term store of value, Bitcoin offers higher short-term return potential.

Q: Why are institutional investors interested in Bitcoin now?
A: Regulatory clarity—especially the approval of spot Bitcoin ETFs—has lowered barriers for institutions. Products like these allow brokers and asset managers to offer crypto exposure without directly holding or securing digital assets.

Q: Can Ethereum maintain its upward trend?
A: Ethereum’s price momentum is supported by its role in DeFi, NFTs, and enterprise blockchain applications. Continued network upgrades and developer activity suggest long-term viability beyond speculative trading.

Q: What risks should investors consider?
A: Cryptocurrencies remain volatile and sensitive to regulatory changes, macroeconomic trends, and market sentiment. Investors should conduct thorough research and consider diversification when allocating to digital assets.

Looking Ahead: The Future of Digital Finance

The ascent of Coinbase to fourth place among global exchanges symbolizes a broader shift: digital assets are no longer fringe investments but core components of modern financial systems. As more investors seek exposure through regulated channels, platforms that combine security, compliance, and innovation will continue to lead.

With Bitcoin regaining momentum, Ethereum evolving its ecosystem, and traditional finance integrating crypto products, the next phase of financial evolution is already underway.

👉 Explore how you can participate in the next wave of digital asset growth.

The convergence of regulation, technology, and market demand has created a fertile environment for sustainable growth in the crypto economy—one where pioneers like Coinbase are setting the pace.