ETFs in Spotlight as Coinbase Shares Slip Despite Upbeat Q3 Earnings

Shares of Coinbase Global, Inc. (COIN) gained 4.6% on Oct. 31, following the company’s better-than-expected third-quarter 2025 results, backed by solid trading volume. However, the stock failed to maintain this upbeat momentum and slipped 3.9% on Nov. 3, most likely due to the Ethereum-based decentralized finance protocol Balancer suffering a multi-million-dollar hack.

This pullback presents an opportune moment for investors interested in Coinbase to consider exchange-traded funds (ETFs) with significant exposure to the stock. This approach would allow investors to capture potential upside while mitigating company-specific risks that could severely impact profits during times of unprecedented crisis.

But before diving straight into these ETFs, let us check Coinbase’s overall performance in the third quarter, in terms of other metrics.

A Brief Analysis of COIN’s Q3 Results

Coinbase’s third-quarter earnings and revenues comfortably surpassed their respective Zacks Consensus Estimate. On a year-over-year basis, the company delivered improved performance on both counts. While its earnings surged a solid 128.6%, revenues grew 55.1% on the back of strong product execution.

Segment-wise, revenues grew across both its Transaction and Subscription & Services units. While solid trading volume and the resultant increase in instant transfer activity bolstered the top-line growth in the Transaction segment, strong native unit inflows boosted the Subscription & Services unit’s revenues.

Coinbase ended the third quarter with cash outflow from operating activities worth $638.8 million against cash inflow worth $1.59 billion in the year-ago period.

In August 2025, COIN closed the Deribit acquisition, bringing the number one crypto options venue into Coinbase. Following this, Coinbase witnessed more than $840 billion in total derivatives volume in the third quarter, driven by stronger participation from institutions and advanced traders.

Moreover, in the third quarter, Coinbase customers held on average, $15 billion of USDC on the platform, making COIN the largest contributor to USDC’s all-time high $74 billion market cap (as mentioned in the company’s third-quarter earnings call transcript).

Looking ahead, Coinbase expects its subscription and services revenue growth in the fourth quarter of 2025 to be driven by higher average crypto prices and continued expansion of the Coinbase One subscriber base.

On the expense side, the company expects its total depreciation and amortization expenses to be higher than historical averages during the October-December quarter, on account of amortization of intangibles from its recent acquisitions.

Coinbase-Heavy ETFs in Spotlight

First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT)

This fund, with total net assets worth $153.2 million, offers exposure to 20 companies from the crypto industry, including Bitcoin Exchange-Traded Products and Digital Economy companies. Of these, Coinbase carries the second spot, holding 16.38% of the fund.

CRPT has gained 26.2% year to date. The fund charges 85 basis points (bps) as fees.

iShares Blockchain and Tech ETF (IBLC)

This fund, with assets worth $105.5 million, offers exposure to 39 U.S. and non-U.S. companies that are involved in the development, innovation, and utilization of blockchain and crypto technologies. Of these, Coinbase carries the second spot, holding 9.77% of the fund.

IBLC has surged 82.7% year to date. The fund charges 47 bps as fees.

Fidelity Crypto Industry and Digital Payments ETF (FDIG)

This fund, with net assets worth $293 million, provides exposure to 75 companies that are engaged in activities related to cryptocurrency, related blockchain technology and digital payments processing. Of these, Coinbase carries the second spot, holding 7.10% of the fund.

FDIG has soared 64.6% year to date. The fund charges 40 bps as fees.

Global X Blockchain ETF (BKCH)

This fund, with net assets worth $442.5 million, provides exposure to 27 companies that are positioned to benefit from further advances in the field of blockchain technology. Of these, Coinbase carries the seventh spot, holding 6.97% of the fund.

BKCH has surged 111.9% year to date. The fund charges 50 bps as fees.

Bitwise Crypto Industry Innovators ETF (BITQ)

This fund, with assets under management (AUM) worth $512.8 million, provides exposure to 30 companies involved in servicing the cryptocurrency markets, including crypto mining firms, crypto mining equipment suppliers, crypto financial services companies, or other financial institutions servicing primarily crypto-related clientele. Of these, Coinbase carries the second spot, holding 7.80% of the fund.

BITQ has gained 71.2% year to date. The fund charges 85 bps as fees.

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This article originally published on Zacks Investment Research (zacks.com).

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